ITIJITIJ Page 18 Page 20 Page 22 Page 24 International Travel Insurance Journal ISSUE 51 • APRIL 2005 ESSENTIAL READING FOR TRAVEL INSURANCE INDUSTRY PROFESSIONALS AIG’s Greenberg US investigates rise in squeezed out Maurice ‘Hank’ Greenberg, the legendary patriarch of the American insurance industry, has stepped down as CEO of American International Group (AIG), the world’s largest insurer, the company he built from the ground up over 40 years. He remains as non-executive chairman. By Milan air ambulance crashes Korcok A startling upswing in medevac Facing inquisition from the Securities and Exchange accidents and fatalities in the US has Commission (SEC) and New York Attorney General prompted an investigation of the air Eliot Spitzer – who last fall broke open the kickback ambulance industry by the Federal and bid-rigging scandals that rocked the insurance Aviation Administration (FAA) and the industry – Greenberg was eased out by directors National Transportation Safety Board who recognised the need for greater transparency (NTSB). By Milan Korcok in corporate operations and wanted to break free of the autocratic control Greenberg had exerted over After a record 37 deaths in 12 medical the company. helicopter and fixed-wing air ambulance Greenberg’s confrontational manner during the crashes in 2004, followed by seven Spitzer investigations was not accepted gracefully by more deaths of patients, pilots and regulators. Industry analysts said Greenberg should paramedics in the first two months of have taken a more conciliatory, more co-operative 2005, these two federal agencies are tone. He accused Spitzer of damaging the whole scrambling to amass data and formulate insurance industry by his charges. recommendations to rein in the carnage. Greenberg, approaching 80, one of the largest shareholders of AIG, with an estimated 43 million 2005 tally, so far: shares worth close to $3 billion, was known as an • On 5 January, an A-Star 350D medical autocratic taskmaster whose accounting and helicopter based at the North Mississippi operating practices were becoming obsolete and, to Medical Center in Tupelo crashed shortly some regulators, possibly questionable. Regulators after takeoff killing the 58-year-old, now want to talk to Greenberg about transactions veteran pilot. No staff or passengers between AIG and Berkshire Hathaway’s General were on board. The craft was owned by Reinsurance unit executed in the years 2000 to Denver, Colorado-based Air Methods 2001, which, they believe, may have artificially Corp. inflated AIG’s reserves. • On 10 January, the pilot and Though AIG was not a primary target of the Spitzer paramedic on board another Air investigation that hit broker Marsh McLennan Methods Corp. helicopter spun into the Potomac based in Steamboat Springs, Colorado, crashed on • On 21 February, an Air Evac Lifeteam helicopter Companies last October, AIG was served with River and died after dropping off a patient at the way to Rawlins, Wyoming, where it was to pick carrying three crew members and one patient subpoenas for information by the attorney general’s Washington Medical Center. A nurse survived. up a patient for transfer to a hospital in Casper. The crashed in western Arkansas shortly after it lifted off office, as were many other insurers and brokers. • On 11 January, a twin-engine Beech E-90 KingAir pilot and two medical crew were killed. One of the Two of AIG’s executives pleaded guilty to criminal ambulance operated by Mountain Flight Service, crew survived. continued on p.5 fraud charges. Greenberg’s son, Jeffrey, was also spun out as chief executive of Marsh McLennan at the insistence of Spitzer. His other son Evan is chief executive of Bermuda-based Ace Ltd. Both Jeffrey and Evan once worked as executives at AIG but Tsunami insurance losses are modest found their father too irascible to work with and The true cost of the December tsunami disaster is suspected: that the December tsunami disaster was insurance claims from foreign tourists. This is went off on their own. now apparent for insurers, and unlike the wave's not as costly to the insurance industry as it was in relatively light compared to the more serious Martin J. Sullivan, former co-chief operating officer impact on lives in Southeast Asia's coastal regions, human and economic terms. economic loses that could be over US$13.4 billion was immediately installed as new CEO, taking over it could have been a lot worse. By Richard Forsyth The report said ‘insured losses are expected to be (€10 billion), making it the fourth most expensive from Greenberg. Steven J. Bensinger, treasurer and relatively modest’, and losses for the tsunami ‘are disaster last year after October’s Japanese controller, was appointed chief financial officer, London-based risk and reinsurance consultancy Guy expected to be well below those sustained by the earthquake, and hurricanes Charley and Ivan in the taking over for Howard I. Smith. Carpenter & Co. (part of Marsh & McLennan four hurricanes that hit the US in 2004’. US. Frank Zarb, AIG Executive Committee Chairman, Companies, Inc.) has released a report entitled Insured losses are estimated at between US$2.5 In summary, the report explained that the tsunami said: “The board has concluded it is now in the best Tsunami: Indian Ocean Event and Investigation into billion and US$4 billion (€1.9 billion to €3 billion), a affected ‘one of the poorest regions of the world, Potential Global Risks. It has stated what analysts major part of which will come from life and health where most of the properties were uninsured’. continued on p.8 2 NEWS

Tsunami update ITIJITIJ Information: the key to tsunami recovery Massive quake kills International Travel Insurance Journal The findings, hundreds in South published in WHAT’S IN mid-March, of East Asia the Post- On the 28 March – just three months after an Tsunami Global earthquake triggered the 26 December tsunami THIS ISSUE? Travel disaster, responsible for killing 300,000 – another giant Intentions tremor devastated South East Asia yet again. The US Research for Geological Survey (USGC) reported a quake the World measuring 8.7 on the Richter scale, shortly followed REGULARS Tourism by a series if other quakes, one of a magnitude 6.7. Organization The damage, although significant, is said to be far less News 1 (WTO) show than the December incident. Grapevine 5 that the “The initial information we're getting is that it is, Editorial comment 6 majority of perhaps, not as serious as first anticipated,” said travellers Michele Lipner with UN Humanitarian Affairs in Banda Insurance matters 7 planning to visit Aceh, Indonesia, soon after the event. Health matters 10 Asia said they However, despite Indonesia’s National Co-ordinating Travel matters 12 would like Agency for Disaster Management and Refugees Air ambulance news 16 more claiming an initial death toll of just over 300, the final Company brief 17 information figure could climb to several thousand. News analysis: Final call for stretchers 18 about the The massive earthquake struck near the coast of World markets: The hills are alive 24 affected areas, mainly relating to health, sanitation per cent of whom said they were now less likely to northern Sumatra, about 125 miles northwest of and the progress of the massive clean-up operation, travel to the Asia region. On the other hand, the Sibolga, and about 880 miles northwest of Jakarta, Hot spots 27 with regards to the impact the waves had on least impact has been on the travel plans of Indonesia’s capital. The tremor was felt in Indonesia, Letters 28 infrastructure and tourist facilities. Canadians (69 per cent said the tsunami had no Malaysia, Singapore and even Bangkok. The fact that it Smile corner 28 The scale of the tsunami and the extensive media impact), the French (65 per cent), Germans (60 per came from the fault line off the coast of Sumatra, Dick’s hotline: Typical hotline cases 28 coverage following the event meant that cent) and Australians (60 per cent). And in some where the December quake erupted, led to a great Service directory 29 international visitors were naturally wary about the countries, such as China, the UK, Canada and deal of speculation. Recruitment 34 state of destinations in Asia, leading ultimately to a Sweden, the tsunami appears to have had a positive “This looks like a fraternal twin of the 26 December Diary dates 34 significant drop in tourist arrival numbers. As a result, impact on people’s travel plans to Asia. Reasons earthquake,” said Kerry Sieh, a professor of geology at On the move 35 the livelihood of many local communities, who are cited for this increased intention to travel were the California Institute of Technology. “It’s not a dependent on tourist revenues, have been kept altruistic sentiments and a willingness to show duplicate. It occurred a little bit further south, a couple Contributors 35 from improving. The tourist authorities in these support for local communities as a way of helping of kilometres further south. But it’s the same type of areas are, therefore, faced with the task of them to recover. These feelings are tempered, earthquake.” FEATURES reconstructing their villages, as well as enhancing however, by the idea that it would be inappropriate The December quake was more intense, however, tourist confidence: two formidable challenges. to holiday while local people were having a tough recorded at magnitude nine. Patrick Leahy, Associate A kick in the Balearics 20 The recent research, conducted by Visa Asia Pacific, time. Director of Geology for the USGS explained: “That Part two – safety issues in popular island resorts found in its survey of 10 key worldwide markets that So, most of the barriers to travel, as expected, seem released a lot of strain in the earth's crust, but where it Defensive medicine 22 a majority of people – 65 per cent – said the to be based on inadequate information and jaded releases strain, often it loads another section.” Paying for protection tsunami had no impact on their travel plans to the perceptions about the infrastructural readiness and The Red Cross and the United Nations brought in region as a whole, but only 52 per cent said their safety of the affected areas, with regards to receiving medical supplies and healthcare workers to treat ITIJ TEAM travel plans to specifically affected areas had not visitors. These issues are now likely to be addressed casualties, and the National Oceanic and Atmospheric Editor-in-chief: Ian Cameron been affected. However, 30 per cent said the with targeted information and communication Administration advised residents within 600 miles of aftermath of the tsunami is deterring them from strategies highlighting the recovery of destinations, the epicentre to evacuate coastal areas. Nias Island Editor: Richard Forsyth traveling to these destinations. namely their infrastructure, service and ambiance. appeared to be the hardest hit. Unlike the December Deputy editor: Sarah Lee Most severe is the impact of the tsunami on the These things are critical to speed up recovery and earthquake, people were informed and reacted Editorial assistant: Leonie Bennett travel plans of Japanese and Korean travellers, 60 minimize further risks of slowdown. immediately. “This time, at least, people heard about the earthquake,” Jan Egeland, the UN emergency Designers: Eli Butler relief coordinator. “Many people fled inland.” Chris Marke US correspondent: Milan Korcok Tsunami victims file lawsuit India correspondent: Saby Ganguly Three lawyers have filed a lawsuit in the New York the strength and location of the quake, and although Legal correspondent: Dick Atkins district court on behalf of a group of Austrian and there is supposed to be a tsunami warning from 6.5 Ocean quake near Conference manager: Denise Clements German victims of the Asian tsunami disaster. The on the Richter scale,” said Herwih Hasslacher, one suit, naming the French hotel chain Accor, the of the lawyers. The quake measured 9.0. Another Japan Production: Adele Brown National Oceanic and Atmospheric Administration lawyer on the case, Edward Fagan, pointed out that Production assistant: Helen Watts (NOAA) in the US and Thai authorities, is precautions were, however, taken to evacuate A powerful earthquake measuring 7.0 on the Advertising sales: Jude Edwards demanding the parties involved prove they reacted military personnel from the Diego Garcia base in the Richter scale, 25 miles off the coast of Japan’s island David Fitzpatrick adequately to the disaster. Indian Ocean. of Kyushu, on 20 March was responsible for killing The case, the first of its kind arising from the 26 Accor is named in the lawsuit as plaintiffs say the one person, injuring 500 people and destroying Finance: Pauline Lloyd December tsunami, will accuse the NOAA in chain did not properly notify relatives of the victims several properties. The Japanese Meteorological Helen Parker Washington and its after the disaster, Agency said the quake occurred at the unusually Cartoonist: Chris Duggan Hawaii-based and that the Sofitel shallow depth of 5.5 miles below the ocean floor tsunami warning hotel in the Thai and that it was the largest to hit Kyushu since May centre of failing to resort of Khao Lak 1997, and the first one measuring more than FREE SUBSCRIPTIONS FOR alert Indian Ocean was built on a fault magnitude six since 1898. TRAVEL PROFESSIONALS countries of the line. A total of 85 aftershocks were subsequently impending disaster. Although the suit is recorded and there were initial fears of a second The NOAA not, at present, large quake. ITIJ registered the designed to “There may have been some disturbance of the earthquake, but as demand ocean’s surface, but we weren’t worried about Voyageur Buildings 43 Colston St the Hawaii centre compensation, this tsunami damage,” said Masahiro Yamamoto of the Bristol BS1 5AX covered only the is a future Meteorological Agency soon after the event. UK Pacific, no possibility, The worst hit area was the small island of Genkai, warnings were especially if the where 65 homes were destroyed by mudslides editorial: +44 (0)117 922 6600 given out. The lawyers are able triggered by the quake. Around 500 of the 700 advertising: +44 (0)117 925 5151 Thai authorities to prove residents on the island were evacuated. fax editoial: +44 (0)117 929 2023 also had their own negligence in the Japan suffers from earthquakes more than most fax advertising: +44 (0)117 925 2040 information, but alerts were not passed on in time case of the accused. “At the end of the day, it’s quite countries, but because of this it is better prepared email: [email protected] and people were left without a chance to flee. possible it will show that nobody did anything for them; for instance, building standards take into web: www.itij.co.uk “We have evidence they did not warn us, even wrong,” said Fagan. “But people want to know, even consideration earthquake-proof designs that make though they knew a quarter of an hour later about if they (their relatives) had no choice.” built-up areas a lot more safe.

International Travel Insurance Journal www.itij.co.uk

4 NEWS

Drunks show World tourism Americans see good spring travel season flawed security growth slows Buoyed by a sound economy, Americans will be Recent increases in both hotel and airline travel Three men, clearly the worst for ware after a International tourism growth is slowing this year, travelling in record numbers this spring, according support TIA’s forecast for strong travel volume, said drinking session, managed to scale the fence at announced the World Travel & Tourism Council to the Travel Industry Association (TIA) spring 2005 Dr Cook. Perth International Airport and walk onboard an (WTTC) on 7 March. Last year saw the impressive travel forecast. By Milan Korcok The strongest upswing has been seen in leisure empty A330 Qantas jet unchallenged recently. 6.8 per cent increase, but this year, world tourism is travel, which is up one per cent from last spring, to Whilst Federal Justice Minister Chris Ellison said the expected to grow just 5.1 per cent. “Americans are upbeat, a prelude to a busy spring 222.9 person trips. Though this is only a moderate men did not pose a serious threat, the fact that it Last year was seen as a rebound, but normal rates travel season. Their intentions increase over the year, it is was relatively easy to evade of growth are healthy, they feel good about nearly seven per cent higher detection has left security officials are now the economy, and they feel than spring 2003 and nearly 10 once again open to criticism. predicted positive about their own per cent higher than spring of “It wasn’t a designed attempt to by the finances,” said Dr Suzanne Cook, 2000, said the forecast. create any threat to security,” he WTTC, TIA Senior Vice President of The recovery in business and said. “These three men were based in Research. convention travel remains more allegedly intoxicated at the time and London. According to forecast data, problematic, however, as the we’ll ensure that this doesn’t happen The travel Americans will take 280.9 million 47.1 million person trips again.” and person trips during March, April projected for the spring period Labor MP Kim Wilkie was critical of tourism and May, representing a 1.2 per of 2005 remains below the peak the incident and said: “If three economy cent increase over spring 2004. years of 2001 and 2000, which allegedly inebriated men are able to is forecast The previous peak travel year saw 48.1 million and 47.2 scale an airport fence, board a plane to expand was 2001, when they took 272 million person trips respectively. and spend an hour on board then it to $7.8 million person trips, after which However, spring business and is alarming to imagine what a person trillion in there was a two-year dip until convention travel will have or group with more sinister 2005. recovery started to take hold. A person-trip is one increased two per cent this year over spring of last intentions may be capable of doing. WTTC person on one trip travelling at least 50 miles from year. TIA is the national organization representing all “Regardless of the sobriety or President home, one way. components of the travel industry in the US. otherwise of the men involved, this incident Jean-Claude Baumgarten believes that ‘the exposes serious and disturbing flaws with security at pendulum is definitely swinging to Asia’, as one of the airport.” the greatest world markets, with a fast growing The three men, all population of Chinese and Indian A bag full of dosh in their early tourists. twenties, were Other areas expected to see significant Research by insurer Legal & General in the UK has contents of our luggage. Many of us forget the actual arrested near the growth are the US, France, Germany revealed that most travellers actually underestimate value of the suitcase itself. Then, as items are often plane they boarded, and Spain. the value of their luggage! Most UK travellers believe packed into the case individually, the accumulated on an aerobridge, The travel and tourism economy is their suitcases hold about £500 worth of belongings, value of all the contents is not fully appreciated.” on 21 March. They made up of direct and indirect revenue but, for a family of four, the value is in fact on He added: “It is important that holidaymakers check were so drunk that from the industry. It went into decline in average five times this. And for a specialist holiday, the value of their luggage and contents to make sure they were said to 2002 after 9/11, and SARS also stunted such as skiing, the cost of luggage is usually around they have sufficient cover in place before they travel. be incapable of growth for the sector. Normal world £2,500. This could be insurance cover under the personal being interviewed growth is expected to be around four Legal & General’s Andy Sampson said: “It is clear baggage of a travel policy or personal possessions after their arrest. per cent annually through 2015. that as holidaymakers we seriously undervalue the cover under their home insurance policy.”

International Travel Insurance Journal www.itij.co.uk NEWS 5

GRAPEVINE•GRAPEVINE•GRAPEVINE•GRAPEVINE•GRAPEVINE•GRAPEVINE•GRAPEV INE•GRAPEVINE•GRAPEVINE•GRAPEVINE•GRAPEVINE•GRAPEVINE•GRAPEVINE•GRAPEVINE•GRAPEVINE•GRAPEVINE•GRAPEVINE•GRAPEVINE•GRAPEVINE•GRA US investigates rise in air ambulance crashes N continued from p.1 GRAPEVINE to carry an elderly car crash victim to Northwest other helicopters, and more recent surveys suggest Medical Center in Springdale. The patient, a man that ratio may not have improved much over time. Smuggling snails Are men really from Texas visiting friends in Arkansas, died in the That study reported 13.42 crashes per 100,000 helicopter crash having survived the car accident. flight hours for the air ambulance industry overall – The pilot and crew survived. According to the fixed-wing as well as helicopters. Most of the better drivers than NTSB, the accident was the second crash in four problems were attributed to pilot error: flying in months for Oklahoma-based Air Evac, and the bad weather, night-time disorientation, taking women? eighth since 2001 involving an Air Evac helicopter. unnecessary risks. Air Evac is one of the largest air medical services in After some aggressive self policing in the wake of Seventy years on from the first driving the nation, operating in 11 states with 43 aircraft. the report, the accident rate dropped to 3.14 per examination, the man in charge of driving test At this rate, the 2005 crash and fatality figures will 100,000, but rose again persistently. According to standards in the UK is causing controversy with outpace last year’s and already equal the total Florida-based air safety analyst and consultant his claim that men are better drivers than fatalities recorded by air ambulances in 2003. Ellen Robert Breiling, emergency medical service women! Engleman Connors, Chairwoman of the NTSB, has helicopters had an accident rate of 7.45 per Robin Cummins, Chief Examiner for the British confirmed that this spiking of 100,000 flight hours government’s Driving Standards Agency, which medevac crashes and fatalities in 2003, lower than oversees more than 1.5 million driving tests each is ‘of extraordinary concern to the peak in the mid year, has somewhat riskily declared that male the Board’, especially at a ‘80s, but much Of all the weird and wonderful things people are drivers display ‘more natural ability’ than females. time when other air carrier higher than its low caught trying to smuggle, snails are not that “Overall, it does seem to be that men can pick segments are improving their point in the mid ‘90s. common. But a woman was arrested at up the basic skills more quickly,” Cummins said. safety records. According to the Heathrow Airport in London at the beginning of “With young men there seems to be a lot more To date, neither the NTSB, FAA, the accident March with a massive 224 pounds of snails in her natural ability. Some females – though not all – which investigates crashes, rate is now the luggage! take a lot more teaching.” nor the FAA, which regulates highest it has been in The woman was stopped as she went through According to statistics, the average UK male the industry, have compiled 17 years. Industry the ‘something to declare’ channel. A Customs learner driver needs 12.2 hours of driving lessons data about air ambulance experts have and Excise spokesperson said: “It was the largest to reach a 46 per cent pass rate, while women activity as a specific attributed part of the ever seizure of snails at the airport. The woman require 15.3 hours and their pass rate is 40 per component. high casualty rates arrived on a flight from Lagos. An officer became cent. Females take on average 2.12 driving tests Given the growing spate of among medical suspicious and opened one of her many bags.” to pass, while men take just 1.87. accidents, however, carriers to an He added: “It is hard to say where the snails However, realising he might be offending the investigators from the NTSB explosion in the were headed, but in many places they are a female population of the UK, he did hastily add: are moving to issue improved demand for air delicacy and can fetch quite a lot of money. A “There are plenty of women who are excellent safety and training services far outpacing specialist team at Heathrow has taken them away drivers and plenty of men who are terrible.” recommendations to the FAA, the available supply to see if they can identify them.” It is unclear Perhaps that’s why car insurance tends to be which has regulatory authority of pilots and the what will happen to the snails. cheaper for women, Mr Cummins! over all segments of the ability to train those aircraft industry, including air who are hired well ambulances. The FAA has enough and fast already met with some air enough. Pacemaker dispute A hair raising ambulance operators to try to According to Blair develop improved flight safety Beggan, A dispute with an insurance company in the US is strategies and protocols. The NTSB is expected to spokesperson for the Association of Air Medical apparently the reason why a Texan man, James experience hold public hearings on the matter of air ambulance Services (AAMS), there are between 650 and 700 Donalson, cut a pacemaker out of his dead safety in coming weeks, but it has already signalled helicopters nationally and an uncharted number of mother’s chest. A ground-handling worker at Stansted Airport in urgency about the issue. fixed-wing craft flying about 505,000 medical Sergeant Bruce Williams, who arrested Donalson, the UK has been suspended from work for a Among the recommendations now being transport missions annually. That is at least twice the commented: “It’s my week for wearing too considered are the requirement of the use of night number a decade ago. Beggan said AAMS is understanding there’s been some much gel in his hair! vision goggles by pilots; better risk management currently compiling a more comprehensive kind of ongoing dispute between Apparently, John training for pilots and crew; more rigorous pilot database on the entire industry – rotor and fixed- the son, insurance companies and Graham’s spiky hairstyle training; and using computers to warn pilots about wing – that she expected ready for release later this the doctor since this pacemaker required just too much proximity to terrain, towers and other obstructions. spring. She said also that approximately 54 per cent was implanted in 1995.” gel to keep it in place. Equipping one helicopter with night vision goggles of these are hospital-to-hospital transfers, and about Donalson said that he wanted to Graham’s union claims can cost over $100,000, however, although some one third are on-the-scene interventions such as keep the pacemaker as evidence he already conformed companies already do, but experts don’t see crash or emergency pick-up sites. of possible wrongdoing by the to the rules by reducing goggles alone as a panacea. Reviews of the NTSB Many air ambulances are affiliated with hospitals, but supplier. But investigators wanted the amount of gel in his crash data show 75 per cent of medical transport more and more of them are outsourcing this it to help determine the hair, adding: “Workers crashes involved some pilot error. activity to private for-profit businesses. Private health circumstances of the woman’s are only ever Much of the recent concern has focussed on the insurance plans and Medicare pay for air evacuation death. He has been charged with suspended for gross helicopter sector of the air ambulance industry as and transfer costs in most cases. But when the tampering with evidence, punishable by up to 10 misconduct, such as stealing or fighting. It is that is where the spiking of fatalities is most severe. ultimate price of lives is what is being paid, this years in prison. The argument with the insurance madness to threaten a person’s living over An NTSB/FAA report in 1988 found that medical surely is an industry where any research regarding company goes on. something like this.”

P helicopters were crashing at three times the rate of safety and security is welcomed wholeheartedly. EVINE•GRAPEVINE•GRAPEVINE•GRAPEVINE•GRAPEVINE•GRAPEVINE•GRAPEVINE• GRAPEVINE•GRAPEVINE•GRAPEVINE•GRAPEVINE•GRAPEVINE•GRAPEVINE•GRAPEVINE•GRAPEVINE•GRAPEVINE•GRAPEVINE•GRAPEVINE•GRAPEVINE•GRAPEVI

www.itij.co.uk International Travel Insurance Journal 6 NEWS

Indian call centres feel the strain

India’s call centres offer ‘golden handcuffs’ to the major chunk, vary from 24 to 40 per cent. This result is: poor service to customers, and frustration retain often overworked and disillusioned results in a 12-hour working day – with not more among the CSRs and HR managers. Editorial employees. From Saby Ganguly in Mumbai, India than a 30-minute dinner break – in many of the call Says the operations manager of a call centre in centres. Many employees forego their weekly off- Mumbai, on the condition of anonymity, “In most India’s call centre industry, which counts some of the days too. other industries, inadequate availability of quality staff comment international It is not just the call- could be countered with rivals poaching each other’s insurance majors answering executives employees with higher salaries. But, in the call centre among its (‘customer service industry, poaching would be disastrous since costs Defensive medicine is costing insurers clientele, is reeling representatives’ or would rise and clients could dump India and opt for dearly, and it’s a practice on the rise. under high staff CSRs) who are facing cheaper destinations such as Vietnam, the Although the US holds pole position for attrition rates, the brunt. Senior Philippines, and perhaps China too. We cannot liability suits, it is a threat that is spreading even though its managers, too, afford to poach; we only have to make call centre overseas. With armies of lawyers begging owners are busy especially those in jobs more attractive to retain employees.” patients to draw blood back from the counting their human resource So, what are call centre companies doing to cope hospitals, it’s no wonder that every dollar earnings. An (HR) management, with the problem of high staff turnover? They are precaution, no matter how unnecessary, is industry that has are having to bear trying to retain employees with ‘golden handcuffs’ being used to make procedures absolutely caused heartburn the heat. that bring them interest-free car and home loans, watertight to protect hospital staff against and angst in International clients free meals, accommodation and transport – right up litigation. sections of judge overseas call to parachute jumping and salsa classes! But will these The ‘better to be safe than sorry’ attitude is, Western societies centres by the ‘floor freebies be enough to convince young men and on the surface, a great policy for all that oppose the count’, i.e. the women that it is an ‘attractive proposition’ not to concerned, but it can lead to a waste of export of jobs, is number of CSRs. sleep at night for six days a week? Or to pretend medical resources, can cause unnecessary today a picture of well-paid but over-burdened More CSRs mean more calls: some clients expect they are American or European when they really are discomfort to patients, and can clog up young employees living an unnatural life – what with their call centre in India to make more than 1,000 Indian? Time will tell. waiting rooms. regular night-shifts, long working hours, the adoption outgoing calls a day, let alone answering incoming Defensive medicine in some cases can be of false names, speaking in an accent that’s not theirs, calls. But, with high staff invasive, distressing and lead to further and coping with often irate and, occasionally, drunk attrition rates, call centres often patient suffering, but these are the times we customers from seven seas yonder. fail to meet targets. live in and the humble hospital has become Add to this a complicated, software-operated staff In a desperate attempt to meet a chess board of pre-empting moves and evaluation system that has churned out previously targets, HR managers shift self protection. The problem I see with unheard terms, such as: DMoQs (Delivery Model of CSRs from one product-line to defensive medicine is that doctors are Quality), which require an agent to pick up a phone another, without adequate forced to think of themselves first and the within three rings; AHT (Average Handling Time); training. Thus, a CSR trained patient second. As well as undertaking too and C-Sat (Customer Satisfaction) scores – the in, say, calculating insurance many checks and precautionary measures, it system even keeps count of the number of minutes premiums for a particular also works the other way; for instance, the a staffer spends in the toilet (‘bio-break’ in call-centre insurance company, is suddenly riskier the procedure, no matter what the jargon) – and you have a perfect recipe for called on to answer queries benefits if it works, the greater the risk for employee burnout. from clients of a computer liability against the operating staff and A survey published in the local media here points out company, asking how to fix management. Defensive medicine has the that staff attrition rates in India’s business-process- bugs in certain software or potential to work against everyone’s outsourcing (BPO) sector, of which call centres form reconfigure hardware. The interests: the patient, the hospital staff, and of course the insurance companies who have to pick up the bills for treatment. For a more in depth look at this prickly subject, Singaporeans switch turn to our feature on page 18. on to insurance

Reports from Asia show that the uptake of travel insurance in Singapore is up 10 per cent to 40 per cent of travellers – from 30 per cent two years ago. However, that’s still six in 10 people leaving their Richard Forsyth home shores without travel cover; although, most Editor of these are short trips to fairly nearby destinations, say insurers. Since the tsunami at the end of December, more Singaporeans are buying insurance, but there is still a distinct lack of policies being bought, especially for Non-stop around short breaks. As a result, local insurers are attempting to educate people as to the benefits of the world travel insurance that they may not have considered, such as trip cancellation and baggage loss. Making it into the record books in early March, yet “The most common reason for cancellation of a trip again, Steve Fossett of the UK completed the first is due to a family member falling sick,” said Koh Yen non-stop flight around the world without refuelling – Yen, AVP, Tenet Insurance Company. “For example, in yet another advance in air travel. if a child were to have chicken pox, the whole GlobalFlyer and its pilot took 67 hours and two family wouldn’t go on the trip. What we’ll do is not minutes to complete the 25,000-mile journey. “It’s only pay for the loss of deposit for the child, but for something I’ve wanted to do for a long time,” Fossett the whole family.” said. “It has been a major ambition of mine.” AIG, which operates in the country, has also noticed There was a point in the flight when it was thought the uptake in travel insurance, stating that five per that the plane might run out of fuel, over Hawaii, after cent of their customers purchase policies online, but 2,600 pounds of fuel mysteriously disappeared after that most people purchase from agents. “It’s more take off. Richard Branson, Chairman of Virgin Atlantic, for convenience, for me, I just call my agent. I don’t who sponsored the flight, doused Fossett with really care what I get, but more or less it (the travel champagne on arrival back in Kansas. Fossett policy) must have certain coverage in case of death appeared slightly unsteady on his feet, after being or whatever,” said one traveller. crammed into the small cockpit for three days solid. Other travellers mentioned the cost of the policy “Although Steve must be exhausted after his epic and the journey, he is clearly exhilarated to have set a reliability of the new record,” Branson said. Fossett has already insurer with set world records in balloons, airships, gliders, regards to subsonic aircraft and boats. paying claims as GlobalFlyer is a single-engine plane made of factors that composite material and was built by Scaled influence the Composites, the same company responsible for purchase of SpaceShipOne, the first private sub-orbital travel insurance. manned spacecraft.

International Travel Insurance Journal www.itij.co.uk INSURANCEMATTERS 7

Fears rise after Marsh licks its wounds

Marsh & McLennan Cos, reeling from its steep sharply from $1.5 billion in 2003. security breaches fourth-quarter loss tied to its recent $850 million But Marsh has been working on a new business Recent security breaches at US companies that settlement of bid-rigging allegations, has halved its model and now, instead of contingent commissions collect, store and sell personal data have brought dividend, cut a further 2,500 jobs and announced – bonus commissions paid by underwriters to attention to privacy and security issues, with direct plans to split off its private equity arm MMC Capital. brokers for bringing them high volumes or more implications for the insurance industry, according to The world’s biggest insurance broker, based in profitable business – which earned the company the American Insurance Association (AIA). A specific New York, also plans to shed unprofitable clients – $845 million in 2003, it will charge clients set breach at ChoicePoint has ‘raised concerns for mainly small commercial accounts – in an effort to commission rates that will be disclosed to both insurers about the return to clients and insurers. Through this new standardised validity of information profitability commission structure, Marsh expects to recover a that it receives from after what it meaningful proportion of its lost revenues within the company collecting called ‘the the next year. and maintaining the most difficult Additionally, staff cuts and a slashed first-quarter data’, according to Eric year in its dividend are intended to aid the recouping of lost Goldberg, AIA financial revenue at the brokerage unit. The dividend paid Assistance General history’. on 30 March was only 17 cents, half of what it was Counsel. He went on The multi- last year, ending the company’s 42-year run of to state the critical million dollar increasing annual dividends. need for information payout in And finally the spin-off of MMC Capital to supplied by such settlement of employees from that division is also planned. The companies to insurers civil fraud unit had come under scrutiny for conflicts of interest to be secure and charges with the brokerage division because it manages a accurate. brought by fund, Trident, which invests in insurers. It is this information New York All in all, it could take quite some time for Marsh’s that helps insurers Attorney insurance brokerage and mutual fund units to make accurate General Eliot bounce back, but the sweeping restructuring at the underwriting and rating Spitzer lead to company over the last five months since the Spitzer decisions, which in turn a sharp drop accusations are important steps forward. “As a helps consumers in the result, we are ready to put these matters behind us receive the most fair and accurate pricing for their company’s share value and an overall loss of $676 and move ahead in 2005 to restore the trust our insurance products. It is, therefore, essential that it million for the fourth quarter of 2004, compared to clients have placed in us and to rebuild shareholder is kept secure, up to date and correct. a net income of £375 million the previous year. For value,” commented Michael Cherkasky, Marsh & In light of recent security breaches, several US the year, net income was $180 million, down McLennan’s new Chairman and Chief Executive. states have introduced regulations or legislation regarding the disclosure of private information, requiring, in many cases, businesses to notify a consumer of the unauthorized use of any customer’s personal data. California is even AXA profit surges, but chief slams IFRS considering offering its citizens free access to their credit reports for up to a year after a breach of Paris-based AXA SA reported a doubling of its net operating costs as a percentage of premiums – their data security. profit – from €1 billion in 2003 to €2.5 billion in declined to 99.3 per cent from 101.4 per cent. “Insurance companies take the privacy of 2004 – and is planning to look for new acquisition AXA’s Chairman and Chief Executive, Henri de consumers very seriously and have procedures in opportunities after generating €1.3 billion of surplus Castries, expects premiums from P&C operations place that insurance companies report information capital. The record jump in profits was attributed to to rise three per cent to five per cent a year. to consumer reporting agencies in strict compliance improved productivity at the company’s life Being in a strong position to expand its business, with the Fair Credit Reporting Act,” said Goldberg. insurance and savings business and more stringent AXA is now rumoured to be in acquisition talks He went on to call for more balanced and universal underwriting for property and casualty insurance, with several potential European insurance government regulation and, ultimately, improved enabling it to sidestep much of the fallout from last companies, but markets further afield are also an security measures. year’s storms. attractive investment opportunity. “Asia remains a AXA began a rationalisation plan after the market priority for growth of the group,” said Mr de downturn of 2001, and is now seeing real Castries. Last year’s unsuccessful attempt by the improvements in underlying earnings. The company company to buy out minority shareholders in AXA has focused on developing more profitable business Asia Pacific Holdings (APH), the Australian-based Aviva to axe jobs in lines and cutting costs and, as a result, has increased business of which AXA owns 51 per cent, did not it proportion of high-margin, unit linked contracts, put it off. If it was to have a higher bid accepted, which in 2004 accounted for 35 per cent of AXA would have no more barriers to expansion in RAC buyout underlying earnings. Asia. Currently, however, a 1995 agreement with At the beginning of March, British insurance giant Denis Duverne, AXA’s Chief Finance Officer, the Australian government restricts the French Aviva announced its acquisition of roadside assistance explained that earnings growth at the life and group’s activities in Asia (not including Japan) to company RAC in a cash and shares deal reported to savings business was helped by a massive dealing exclusively through AXA APH. have cost £1.13 billion. However, Aviva, the world’s turnaround in the UK and Japanese markets and a India is also high on the list of countries earmarked fifth biggest insurer, will be cutting some 1,700 jobs in slight increase in earnings from the US, determined for investment. AXA is currently seeking a joint the process. in part by the weakness of the dollar, but was also venture partner in the country, which Mr de The two companies already have a relationship as the boosted by the contribution from financial services Castries said was a fast-growing market that was RAC has provided services to Aviva-owned Norwich business MONY, which AXA bought at the very much in his plans for accelerating growth in the Union’s own branded roadside assistance service. beginning of last year. A rebound in the stock region. Now, it is hoped the potential of the RAC brand will markets and an increase in demand for savings Meanwhile, disappointment has been expressed by be realized in the insurance and financial services field. products from people concerned about their Chief Executive de Castries regarding International Although RAC already owns the BSM driving school, retirement also helped earnings growth in this Financial Reporting Standards (IFRS), which he says Lex vehicle leasing, and its own travel insurance sector. have neither improved the transparency of accounts product, it will now offer motor insurance and, in the Property and casualty underlying earnings increased nor made them more comparable. In fact, he goes longer term, health insurance products to its to €1 billion from €753 million, and the division’s as far as saying they are actually stifling European customers. Through its Norwich Union brand, Aviva combined ratio – the measure of claims and growth. “The process has been expensive and long will have access to RAC’s 2.2 million members for an outcome that is a very disappointing and an additional 4.5 million corporate one,” he said. customers, which it described as a ‘big untapped According to Mr de Castries, the resource’. requirement under IFRS rules for assets to be The bad news is that 900 jobs are expected to shown at fair or current value, as opposed to be lost through the takeover as the companies historic cost, risked creating artificial volatility combine a number of support functions, and in the accounts of long-term investors, such 800 jobs are expected to be lost through the as insurers. This, he said, was driving them offshoring of office jobs. These cuts are in an out of equities, depressing share prices and effort to make pre-tax cost savings of £80 million generating less money for companies turning a year in 2006. The group will take a pre-tax to the equity markets to raise capital. “In 10 charge this year of £100 million for integrating years from now, people will see this phase as RAC. The deal was announced on the day Aviva having been the phase when very poor reported a rise of 25 per cent in its worldwide macro-economic decisions will have been operating profits to £2.34 billion in 2004. Norwich Union head office taken in Europe,” said Mr de Castries.

www.itij.co.uk International Travel Insurance Journal 8 INSURANCEMATTERS NEWSWIRE Exploring micro- Gap travellers forget insurance urich-based Swiss Reinsurance Co. – the insurance A recent survey by the regard travel insurance as being essential when world’s second-largest reinsurer in terms of UK’s Foreign and travelling abroad. Z premiums written – has said it expects Insurance group Allianz is looking to see how Commonwealth Office However, when questioned about their proposed premium volume to drop two per cent in its insurance companies can reduce poverty by offering (FCO) into the habits activities during their adventure, 45 per cent traditional non-life business in 2005, but that low-premium protection in Asia. Many people in rural of gap year travellers admitted to trying dangerous sports and activities, pricing levels are still high. The company’s contracts areas of Asia, Latin America and Africa have no has worryingly such as bungee jumping, skydiving and white water in Europe and Asia rose amid the most recent opportunity to take out insurance, even if they could revealed that 70 per rafting. renewals, but US business fell, as the company spare the money to do so, as covering them at such cent of them don’t The FCO is launching a gap travel mini-campaign via focused its underwriting on profitability rather than low premiums is not considered viable business. even consider travel the Internet, www.gogapyear.com, which runs to volume growth. Allianz is challenging this belief and is co-operating with insurance. In June, providing information and advice about travel the United Nations Development Program and the questioning 1,000 16 and the issues facing travellers, such as visas, health, oyal & SunAlliance in the UK is continuing German Agency for Technical Cooperation (GTZ) to to 30-year-olds about cultural differences, driving abroad, drugs and along the road to recovery, posting a £1 investigate the market potential of Asia. Werner gap year travel, one- alcohol. The website is part of the FCO’s ‘Know R million net pre-tax profit and an operating Zedelius, Member of the Board of Management of third said they had Before You Go’ campaign, launched in June 2001 to result of £456 million, compared to £140 million in Allianz AG responsible for Growth Markets, and been on a gap year or raise awareness amongst travellers and travel 2003. The group was heavily impacted, however, by Heinz Dollberg, responsible for the Asia Pacific region, intended to take one, but 71 per cent of them didn’t companies. accelerating reserve requirements in the US, which have signed a strategic co-operation agreement on resulted in a sharp reduction in all its US micro-insurance with the two aid organisations. “The operations. initial aim of this public-private partnership is to analyse the demand for micro-insurance in India, Indonesia Small insurers under threat .M. Best Co. has affirmed the financial and Laos,” says Zedelius. strength rating of A- (Excellent) and The project had been in its planning stages since last New European accounting rules and regulations Gentle, head of financial research at Deloitte & A assisgned an issuer credit rating of a- to year, but the recent tsunami disaster heightened its implemented this year may be too much for small Touche, believes this may make smaller companies China International Reinsurance Company Limited importance – only a small number of those affected insurance firms based in the UK to survive. vulnerable at best: “There are plenty of predators (CIRe). The outlook is positive. The rating reflects would have been able to afford insurance. Consultancy Deloitte & Touche released a report waiting on the sidelines to pick off companies affected CIRe’s consistently strong operating performance The first micro-insurance pilot projects are already entitled 2005: UK Financial Services at a Watershed on by poor execution.” and outstanding market presence in the Hong Kong underway in India. A major force in driving these 21 March, based on interviews with senior managers The report indicates the UK industry is facing the and Macau insurance markets. efforts is the regulatory authority’s mandate that and regulatory and risk directors. They warned that biggest shake-up since the introduction of statutory private insurers must source at least 15 per cent of there was an ‘avalanche’ of new regulation and that regulation in 1988. Despite many insurers showing ddressing a gathering of Norweigian insurance their business from rural areas. To achieve this, Allianz smaller firms would struggle to afford the costs of increases in operating profits for 2004, opinions are industry representatives in March, Lloyd’s is working with non-governmental organisations adhering to these new rules. divided. Some analysts are not convinced this will be a A Chairman, Lord Peter Levene, noted that the similar to co-operatives. “Co-operating with aid The Financial Services Authority (FSA)’s ‘Treating major problem. Alasdair Buchanan, spokesman for Baltic storms that struck Scandinavia in January organisations facilitates our operations and allows the Customers Fairly’ project means that administration insurer Royal London, said to Dow Jones about were the most powerful to hit Europe since 1999. business to generate a profit, even in rural areas,” and infrastructure costs should rise, and the report says speculation of firms going under: “It seems an extreme Fourteen people died in the storms and the loss to explains Dollberg. that small businesses will struggle to adapt. Chris thing to say.” (See also FSA flexes its muscles, ITIJ 49). the Swedish timber industry could be up to 30 In the state of Tamil Nadu in southern India, more billion kroner ($4.43 billion). “The surge in than 35,000 men and women have already taken out catastrophic events reminds us of the importance of an insurance policy through Activists for Social pricing risk correctly. The critical role of insurance is Alternatives, an organisation that collaborates with Hong Kong tightens the rules to pay claims … but the industry can only do that if Allianz and its joint venture partner Bajaj. The average its balance sheet is strong,” stated Lord Levene. monthly premium is the equivalent of less than 20 cents. One hundred and eighty insurers operating in The company was disallowed a three-in-one ustralia-based AXA Asia Pacific Holdings Ltd Two thirds of the premium paid covers the Hong Kong, including American International license to sell life, pension and health products has set aside between AU$150 million and administration costs of Allianz’s partner, while five Group (AIG) and Prudential, have been ordered by earlier this year, in what was speculated by local A AU$300 million (€181 million) in capital to cents go to Bajaj Allianz. the country’s regulator to report sales of policies media to be a snub by the regulator for AIG’s illegal help fuel the company’s expansion in China and “Micro-insurance will never generate huge revenues,” purchased by mainland Chinese customers, in an selling of policies. entry into the Indian market over the next three says Zedelius. “However, building a network of effort to stamp out illegal selling. So far, 10 agents The new reporting rule came into effect after years. AXA is currently in talks with several communities that are protected by insurance is a very have had their license taken away for violating media reports that one-third of Hong Kong’s total potential joint-venture partners in India, where rules effective way of helping to reduce world poverty.” country rules that disallow the selling of policies to premiums stem from illegal sales – a figure Richard are soon expected to be relaxed allowing foreign mainlanders not traveling to the city. Yuen, Hong Kong’s Commissioner of Insurance insurers to hold 49 per cent of joint ventures. AIG has responded to the new reporting rules by contends. “The number is less that five per cent,” halting completely the sale of policies by its Hong he said. Groupama Insurances survey of over 100 Testing genes for Kong unit to mainland citizens, and has fired agents Hong Kong’s HK$123.1 billion (US$15.8 billion) major UK brokers, carried out at the end of suspected of selling policies across the border, said insurance market is about a third of that of China, A 2004, confirmed again that a consistent, Saw Choo Dickson, AIG’s spokesperson in Hong where regulators restrict foreign insurers to protect professional, ‘hassle-free’ service from insurers is a insurance Kong. local companies. key factor in determining where brokers place their business. Breadth of product range was ranked next, The UK insurance industry and the government followed closely by the relationship the broker has have struck a deal to extend the moratorium on the with the underwriter. use of genetic test results to November 2011. The decision is set to reassure people who are worried AIG’s Greenberg squeezed out ustralian wealth manager and insurer AMP about taking a predictive test for fear of being continued from p.1 Ltd has reported a net profit of AU$934 denied insurance. A million (€562.1 million) for 2004, compared The suspension of the use of genetic testing in interest of AIG’s shareholders, customers and partners, all AIG executives and managers. with an AU$5.54 billion loss a year earlier. This was influencing insurance was negotiated with the employees to turn to a new generation of This means, in effect, that Greenberg remains AIG predominantly due to higher-than-expected income Association of British Insurers (ABI) in 2001 and was leadership.” executives’ paymaster. And, according to Gerald from investment markets. AMP plans to return meant to run out next year, but it has been decided Ironically, although Silk, an analyst who specializes AU$750 million to shareholders this year and that it could be extended. John Reid, Health Greenberg was ousted as in shareholder class actions: further capital next year. Secretary, said: “Choosing to have a predictive CEO, he retained “He’s (Greenberg) more than genetic test can be life saving and nobody should be considerable sway over AIG just the chairman – he still has ritish insurer Aviva has announced that its put off having such a test because of fears it will be through his control of two a direct impact on the salaries joint venture in China, Aviva-Cofco, has used against them by insurers.” related private companies, that many of these people take B received regulatory approval to open two Insurers still have the right to see predictive test C.V Starr and the Starr home. That means the other additional sales offices in the cities of Zhongshan in results for life cover of more than £500,000 and International Company, directors on the board of AIG Guangdong province and Mianyang in Sichuan critical illness cover of more than £300,000, but the which allocate long-term need to be very watchful,” province, making it the first foreign insurer to enter ABI said that 97 per cent of policies are for less than compensation to AIG says the Times report. these markets. The approvals closely follow the this amount. But, even if the insurers do request a executives. Starr International lists a post Chinese Insurance Regulation Committee (CIRC)’s result, the test has to have been approved by the According to an investigative office box in Bermuda, but is announcement ending geographical restrictions on government’s Genetics and Insurance Commission. report by the New York registered in Panama. overseas insurers. The only test people in this category will have to Times, AIG executives Shares of AIG have fallen disclose, at present, is a test for Huntington’s typically do not receive their about 13 per cent since the msterdam-based ING Groep NV has reported disease. long-term compensation company received the an increase of 48 per cent in its net profit for Patient groups have welcomed the news, but that has accrued for them subpoenas from the SEC and A 2004 to €5.97 billion – from €4.04 billion in GeneWatch UK called the continued voluntary before they retire. Maurice ‘Hank’ Greenberg the attorney general in mid 2003. The group profit was further boosted by agreement ‘a cop-out by ministers’ and said more If they leave AIG before February. strong performance across its banking and insurance should be done to prevent genetic discrimination, retiring, they cannot take the money with them. This is a remarkable turnabout for a company units, and by exceptional gains from a number of suggesting that insurers and employers should be The Starr companies control the compensation. whose shares traditionally grew up to 20 per cent recent asset sales. ING shares rose 0.6 per cent to stopped from using any genetic tests at all. The Starr International Plan currently has about 700 annually. €23.

International Travel Insurance Journal www.itij.co.uk INSURANCEMATTERS 9 NEWSWIRE urich Financial Services AG, Switzerland’s Tour operator Florida seeking entry to offshore insurance largest insurer, has reported an increase of 29 Z per cent in net profit in 2004. Profit for the year was €199 billion, with the company expressing insurance in Zambia market plans to begin expanding after two years of cutting A bill easing the rules by which Florida insurers that annual premium incomes from sales of back. could sell offshore products to non-US residents insurance products to Latin Americans is has been introduced in the state legislature. If approximately $8.6 billion, and if such products he British Insurance Brokers’ Association ultimately approved, the measure could make the could be sold and serviced from Florida, the state’s (BIBA) has produced a guide to terrorism state a centre for international insurance, as it is economy would benefit by $2.7 billion annually. T insurance in mainland Britain to address now for international banking. By Milan Korcok That is almost as much as is generated by brokers’ and policyholders’ lack of understanding of international banks in Florida serving non-US the cover provided by Pool Re, the government- Initially, such legislation would benefit the sales of life residents, primarily in Latin America. backed terrorism reinsurer. insurance and annuities, but would likely expand According to Bowman Brown, an insurance quickly to other insurance industry expert with ontpelier Re in the US paid shareholders products as well. At the Miami-based legal and warrant holders a one-time payment of present, offshore insurance firm Shutts & Bowen, M $5.50 a share on 31 March. The company, products may not be sold non-US residents are which specialised in property catastrophe insurance, from Florida, even to non- subject to US will also increase its quarterly dividend to 36 cents US residents, without withholding tax on a share. specific approval and most annuity and life qualification from the insurance products ritish insurer Norwich Union has acquired its Office of Insurance sold in the 100th book of broker business and is Regulation, an approval international market. B anticipating a steady level of acquisition that insurers say is This makes them non- activity in 2005. The latest acquisition takes the exceedingly difficult and competitive in respect value of purchases in the last 18 months to £58 cumbersome to obtain. At to products purchased million. present, such products are from offshore insurers. sold to non-US residents by insurers in Bermuda, Almost all major US, Canadian and European espite a hurricane-ravaged third quarter in the Cayman Islands, or by offshore affiliates of other insurers have offshore affiliates that issue products in 2004, property and casualty insurers in the international insurers. the offshore insurance market. The proposed D US reported profits of $28.1 billion in the first According to the South Florida Sun Sentinel, the legislation would even that playing field. nine months of 2004, representing a 22.4 per cent A government-owned insurance company in proposed bill would waive the requirement for In 1978, legislation similar to the recently proposed increase over the $22.9 billion earned during the Zambia has developed an insurance policy called foreign insurers selling offshore life insurance and bill for international insurance generated the surge same period in 2003, according to Weiss Ratings Tour Operators Insurance, aimed at safeguarding annuities to non-US residents to obtain a Florida of international banking in Florida. A 2000 study for Inc. tour operators’ lives in their operations. By Certificate of Authority, provided the companies the Florida International Bankers Association Benedict Tembo met other state requirements. To set up in Florida, estimated international banking accounts for more urich Financial Services Group has divested its foreign insurers would have to show financial than 5,000 jobs and $3 billion for the state. interest in Zurich National Life Assurance Zambia State Insurance Corporation (ZSIC) is also statements, a rating by an insurance rating agency, Advocates of the new legislation and the lobbyists Z Company Limited in Thailand to National giving out a K20 million (about US$4,000) free have been licensed elsewhere for at least three who are pushing it along contend that the new Finance Public Company Limited. This move is in cover limit on public liability as a way to years and have a $15 billion surplus, among other business would give Florida insurers a foot in the line with Zurich's strategy to strengthen this sector encourage operators to get the insurance that requirements. door to an industry that generates more than $40 of the group's business in markets where it has a should lead to better services. In the Visit Zambia A recent study by the Beacon Council, a Miami- billion in insurance premiums annually in Latin significant presence. 2005 campaign, in which ZISC is a partner, the based business leadership consortium, estimates America alone. company is promoting the tourist sector through unich Re announced 2004 net earnings of ensuring that tour operators are insured. €1.8 billion ($2.34 billion). The move back “Losses are usually encountered in many M to profitability, after the world's largest situations, they are never planned for – such as reinsurer lost over half a billion dollars last year, was calamities like fire, accidents and buglary – but if welcome news. insurance is taken into account, the loss could easily be reversed through an insurance company .M. Best Co. has downgraded the financial paying back for that loss in full,” said Webster strength rating to 'A' (Excellent) from 'A+' Phiri, Corporate Marketing Manager for the A (Superior) of American Re Corporation campaign. Group's member companies, which includes The tour operators’ insurance allows an applicant American Re-Insurance Company. to simply fill in one proposal form, pay one premium, and complete one renewal and also illis Group Holdings Ltd reported a net attracts discount rates, giving complete business income for the year ended 31 December cover with maximum benefits. Mr Phiri said the W 2004 of $427 million, compared to $414 tour pack insurance policy incorporates various million a year ago. policies as sections of the overall policy, which covers the majority of insurance risks faced by iant insurer American International Group tour operators in daily service. reported a fourth quarter net income of Tourism in Zambia had experienced a steady G $3.29 billion for 2004, compared to $2.75 growth of 7.2 per cent since 2000. By 2003, a billion a year earlier. For the year, AIG reported a rise of 577,526 – amounting to US$148 million – net income of $11.05 billion, compared to $9.27 was realised, while US$152.8 million was made in billion in 2003. 2004 from 610,109 international arrivals in the country. wiss Re reported net profits of CHF 2.5 Mr Phiri said the new tour operators’ insurance billion for 2004, compared to CHF 1.7 billion policy was a big portfolio that guaranteed security S in 2003, despite 2004's natural catastrophe to operators and that ZSIC had decided to be losses. part of the campaign in a quest to develop the country. ZSIC had been working with the Zambia ermany's Allianz reported net 2004 profits of National Tourist Board (ZNTB) in the promotion €2.2 billion, despite last year's spate of of tourism in the country, especially the 2005 G natural disasters and continued problems at campaign. the company's Dresdner Bank subsidiary. The He said ZSIC had been financing the tourist board group's net profit was up 16.4 per cent over the in some ways to ensure that the sector was going €1.9 billion it earned in 2003, and operating profit well. was up 68.6 per cent to €6.9 billion. “There are some workshops that will be run by ZNTB in partnership with ZSIC, where our policy as, the Italian Allianz Group Company, will be demonstrated to the people, so they can increased its net profit by 25 per cent in get a wider understanding of the tour operators R 2004, to €691 million. insurance policy,” he said. ZNTB will also be running a number of workshops to promote ermany's Munich Re Group celebrated its tourism. 125th anniversary in more ways than one It is projected that Zambia will receive one million G recently, posting net profits of €1.8 billion for tourists by the year 2010, thanks to an aggressive 2004 – a massive recovery from its €434 marketing and promotion campaign for the year million loss in 2003. 2005 and beyond.

www.itij.co.uk International Travel Insurance Journal 10 HEALTHMATTERS

Aircraft ventilation reduces spread of disease No Norovirus in Dengue in Yemen

The spread of diseases aboard aircraft has worried aviation industry and medical community should Travellers are being advised to avoid the western health experts for some time now, especially since employ an education strategy aimed at the general Dominican Republic coast of the Arab state of Yemen, due to an the outbreak of SARS in 2002, but a new study by public on health issues related to air travel and The Commission of Health and Tourism and the outbreak of dengue fever. The World Health scientists in the US has found that simply increasing infection, and that passengers should be sure to Pan-American Health Organisation have suggested Organization (WHO) has advised against travel to ventilation follow hygiene that Norovirus, the flu-like stomach virus found the Hodeidah region until there are better estimates within aircraft procedures throughout the Caribbean on the scale of the outbreak. cabins can help such as and cruise ships in the Deputy Minister of Public Health and to prevent washing their area, is apparently under Population, Dr Majed al-Junaid, said passengers hands. The control in the Dominican that priority should be given to becoming ill. report also calls Republic. healthcare, particularly after seven The study by for tougher Since 11 February, no people were reported dead since the Dr Mark rules on the new cases have been emergence of the epidemic. “With Gendreau and disinfecting of reported in the country the outbreak of cutaneous colleagues aircraft from and an investigation into leishmaniasis, which causes long-term from Lahey countries with the epidemic of scarring of the skin, the World Health Clinic Medical malaria and Norovirus at hotels in the Organization [WHO] has imposed Centre in the other vector- Dominican Republic has temporary restrictions on all types of US calculated borne diseases found no new cases of travel to four districts. These are the – at present the virus. Tarim, Shibam, Qatam and Sayyun. transmission of only five Noroviruses are known “No security clearance will be granted diseases during countries to be a cause of food and for the areas until the WHO says the commercial air currently do so waterborne gastroenteritis situation has improved,” a Sana’a- travel and (Australia, the outbreaks in settings such based UN official said. found that although commercial airlines are a suitable Caribbean, India, Kiribati and Uruguay). as cruise ships. However, Spraying campaigns have been environment for the spread of disease carried by Dr Gendreau comments: “Because of the ease and few studies have implemented in order to fight the passengers or crew, the environmental control affordability of air travel and mobility of people, investigated the spread of the mosquito, and the systems used in commercial aircraft appear to restrict airborne, food-borne, and vector-borne infectious prevalence of Norovirus infection among civilians infected cases have been transferred to hospitals, the spread of airborne diseases. diseases transmitted during commercial air travel are travelling from industrialised to developing countries. according to sources at the Ministry of Health. The Reporting in The Lancet, scientists note that good an important public health issue. Heightened fear of Reporting in the March issue of the Journal of Clinical situation is said to be stable, but travellers to the ventilation in confined spaces reduces the bio-terrorism agents has caused health officials to re- Microbiology, Kellogg Schwab, an assistant professor region should check the WHO’s updates. concentration of airborne organisms: one air examine the potential of these agents to be spread in the department of environmental health exchange can remove over 63 per cent of airborne by air travel. sciences at Johns Hopkins Bloomberg School of organisms suspended in a particular space. Data “The SARS outbreak of 2002 showed how air travel Public Health, US, analysed stool samples from from an in-flight tuberculosis investigation revealed can have an important role in the rapid spread of 34 people who suffered traveller’s diarrhoea that doubling the ventilation rate in the cabin reduces newly emerging infections and could potentially even during trips to Antigua, Guatemala or infection risk by half and suggested the risk of disease start pandemics. In addition to flight crew, public Cuernavaca, Mexico. Nearly two-thirds of them transmission to other symptom-free passengers health officials and healthcare professionals have an had at least one stool sample that tested positive within the aircraft cabin is restricted to sitting within important role in the management of infectious for Norovirus, the researchers found. Further two rows of a contagious passenger for a flight of diseases transmitted on airlines and should be research is now being carried out into why and more than eight hours. familiar with guidelines provided by local and how travellers are prone to getting sick from The conclusion of the report suggests that the international authorities.” this virus.

International Travel Insurance Journal www.itij.co.uk

12 TRAVELMATTERS

Governments propose, travel agents dispose Canada’s discounter Jetsgo bails out

Seven Asian countries have finalised a strategy to capped mountains, balmy weather year-round, stranding 17,000 double tourism in their region within the coming golden deserts, variety of flora and fauna, different five years through co-branding, promotion and cultures, and abundant natural beauty – and said Just hours before thousands of Canadians hit the any unredeemed tickets. Those who booked with product diversification. But the trade sees it as these tourism attractions would be jointly exploited. airports for their mid-winter March break to travel agents would likely be reimbursed through the little more than an annual party plan for Ms Chowdhury’s statements have few buyers in the southern sun spots, Canada’s third largest and Travel Industry Council of Ontario, which backs up bureaucrats. From Saby Ganguly in Mumbai, India region’s travel and tourism trade. Jayanta Banerjee, fastest growing airline, discount carrier Jetsgo, failure of tour suppliers. And Jetsgo was expected to Chief Executive, Impred India Travel and Tourism, pulled the plug, shut down operations, cordoned make some refunds for tickets issued within days of Officials from India, Bangladesh, Sri Lanka, Myanmar told ITIJ: “The BIMSTEC groups diverse countries. off its aircraft, and without any word of warning departure – in effect, after the bankruptcy decision (Burma), There is no went out of business. Milan Korcok reports was made by LeBlanc several days earlier. Thailand, real reason for In business only two and a half years, the Quebec- Nepal and Thailand, a Leaving 17,000 passengers stranded in 30 cities in based Jetsgo had a troubled and turbulent history, Bhutan met top tourism North America and the Caribbean, with no reporting repeated flight miscues, erratic landings, in the east destination, to alternative travel arrangements and no immediate unexplained cancellations, mechanical problems and Indian city of act in concert refunds available, Jetsgo President Michel LeBlanc flight maintenance inconsistencies that on 8 March Kolkata in with Burma. simply issued a led Transport Canada February to Bangladesh statement saying: to issue an Advance hammer out and Sri Lanka “We are very Notice of Suspension the strategy are India’s concerned about our giving the airline until under the competitors, customers and the 11 April to correct its banner of and are significant hardship safety transgressions. the ‘Bay of unlikely to that this action The regulatory agency Bengal have any causes.” had already, Initiative for meaningful Unaware of any previously, ordered Multi- joint plan. problems with their the airline’s pilots to Sectoral These kind of flight plans when stay below 29,000 Technical agreements they went to bed, feet as a safety and are amusing, travellers arriving at precaution. Economic yet we have their respective Still, however, to pretend to airports in the pre- Canadians kept buying Cooperation (BIMSTEC)’. The strategy is aimed at be serious since they are government-to- dawn hours found up the cheap tickets. cultivating ‘a process of cross-country adventure government in nature.” no signs, no staff, no explanations, and worst of all – LeBlanc himself acknowledged that his business plan through demonstration of the essential oneness of Banerjee’s skepticism is shared by Ahmad Bakhtyar, a no planes waiting for them. To add insult to injury, for Jetsgo was to operate as cheaply as possible, like an intergrated region’. India’s Minister of State for travel agency owner in Dhaka, Bangladesh. On a no other airlines were honouring Jetsgo tickets. a bus line instead of an airline. This he did. Despite Tourism, Ms Renuka Chowdhury, who inaugurated visit to India recently, he said: “This agreement will Some travellers told media at the airport that they the penury, court papers prepared for the the meet, said the plan is “to forge strategies and be forgotten in five years … The only people who called in earlier to routinely check on last-minute bankruptcy filing showed the airline lost CA$22 harness the potential of tourism to its fullest … The will remember it are the bureaucrats who will find flight changes and were told all was on schedule. million in January and February, on top of the ultimate goal is to substantially increase the intra- reason for an annual bash. If any country stands to At least one family group, which had driven over CA$33.8 million it lost in the last six months of regional and inter-regional tourist traffic within the benefit from it, it will be the region’s ‘big brother’, 100 miles to get to the airport, simply returned to 2004. BIMSTEC region.” India. Tourism disparities between countries of the their SUV, headed south and made way for Florida Under intense pressure from several creditors, chief She pointed at the natural assets shared by the region are so huge that any meaningful cooperation by road – 1,270 miles of it. among them greater Toronto’s Pearson International BIMSTEC member-countries – including snow- is unlikely.” What made the problem so acute was that the Airport, LeBlanc’s tipping point came just days before cancellation of Jetsgo’s 70 aircraft came during one the shutdown when Nav Canada – the private non- of Canada’s busiest vacation travel periods, March profit corporation that operates the civil air break, when schools are let out and families with navigation system and provides air traffic control, children in tow head to places like DisneyWorld or weather and flight information and other aids to other holiday destinations: Mexico, the Caribbean, airlines – made a move to seize Jetgo’s leased Cuba, or Latin America. Exacerbating the problem is aircraft. The issue was temporarily resolved, but the the fact that all other airlines are flying full at this time die had been cast. as well. LeBlanc will now head into bankruptcy court to Air Canada and West Jet deployed some of their salvage what he can. available aircraft and added extra flights to help The Jetsgo debacle was a grim reminder of the stranded passengers, but it was up to the passengers demise of Canada 3000, another discount airline, to see about getting their money back. which just as unexpectedly stranded thousands of Several credit card issuers said they would refund passengers around the globe in November 2001.

Cheap deals during school holidays

Travel companies in the UK are offering discounts on for the whole summer and often operate at a loss in holidays during school holidays, due to pressure the shoulder period [May, June and September]. So, from the government who said that the way holidays as a compromise, we’re saying the deals have to be were priced during term time booked in March.” meant that parents were taking A spokesperson for the their children on holiday then, Department for Education thus contributing to and Skills said: “The absenteeism. government encourages Big tour operators, Thomas parents to book holidays Cook, Kuoni, Virgin, Airtours, during the school holiday First Choice and Thomson, period because we believe have all agreed to cut holiday that every day in school costs by up to £400 per counts. person, offering free child “We are working with the places or free travel insurance DTI [Department of Trade for holidays bookable from 1 to and Industry] and ABTA 28 March for trips taken during [Association of British Travel the 2005 summer school Agents] to broker holidays, and will continue to arrangements between major offer peak-season holidays tour operators where the discounted but for a limited industry can offer discounts period only. and other incentives such as Andy Cooper, Director of the free child places to encourage Federation of Tour Operators, families to book holidays in said of the deals: “Tour school holiday periods.” operators only make money during the peak period. At least if travel insurance is free, the families will be They have to take hotel and apartment allocations covered!

International Travel Insurance Journal www.itij.co.uk

14 TRAVELMATTERS

Trains versus planes Air France in safety Bush security tax blasted by tourism scandal industry A Fench labour inspector has accused To the chagrin of the tourism industry and the US’s that the new security tax would kill jobs, stunt Air France of inadequate safety embattled airlines, President George Bush has economic growth and jeopardise local air services to procedures after a flight attendant fell proposed yet another layer of airline security fees small and medium-size communities. They argued seven metres to her death from a totalling almost $1.5 billion in his proposed budget also that US airlines and travellers will already stationary aircraft at Paris-Orly when for the next fiscal year, beginning 1 October 2005. contribute $15.8 billion through 14 different federal a mobile stairway was removed. By Milan Korcok taxes and user fees in 2005. The individual travellers’ Subsequently, a judicial enquiry for total tax burden now represents 26 per cent of a manslaughter has been opened at the According to federal budget documents, the increase typical $200 roundtrip air ticket, up from seven per Créteil court near Paris. By Barbara would allow the government to recover most of its cent 20 years ago. Of the $15.8 billion, US travellers Casassus share of spending on federal aviation screening and airlines pay more than $3.2 billion in aviation operations. The proposal calls for security fees to be security taxes. The leaked labour inspector’s letter raised from $2.50 to $5.50 per leg, up to a The new $1.5 billion security tax would increase the called for the carrier to increase its maximum of total security tax safety staff and alleged that the stairways $16 from burden to $4.7 used at Orly and Paris-CDG airports $10 per billion, said the French Railways, SNCF, has launched the idea of rarely complied with the norms, that only some have roundtrip ATA. “This is forming an alliance among European high-speed gates at the top and bottom, and that staff usually turn flight. This the same train operators to beat back competition from off the reverse sound signal because it is too noisy. would amount airlines airlines. By Barbara Casassus The report noted a dozen accidents or incidents with virtually would spend to such equipment since 1999, several of them during double the employ about The alliance, called RailTeam, should take up to five the past year, press reports said. amount 60,000 people years to set up, and will represent some 200 million Responding to the charges, Air France Chairman and airlines paid or put in place passengers a year. It should start with the Chief Executive Officer, Jean-Cyril Spinetta, said that last year in 360,000 flights Eurostar and Thalys, before being widened to that the comments were ‘not pertinent to the passenger to US Spain’s AVE, Germany’s ICE, the French TGV, Italy’s accident’. A spokesperson for the carrier explained taxes – $1.6 communities. Pendolino, the future Dutch high-speed train HSL that one of the incidents could not be traced, four had billion – in “We believe this and the Franco-Italian service Artesia and Franco- occurred during touchdowns abroad, and six had addition to $1.5 billion tax Swiss service Liria. occurred at Paris-CDG. The author of the letter was the $315 proposal will The tie-up is the brainchild of SNCF’s Executive the labour inspector for CDG and not Orly, the million they put another Vice-Chairman Guillaume Peépy, and is modelled spokesperson added. A letter from the Orly inspector paid in separate security fees. 19,000 airline jobs at risk and jeopardise up to on airline alliances, with the aim of harmonising fare was awaited as ITIJ went to press. Negative reaction from all segments of the tourism 115,000 flights to small and medium-size structures, reservation systems and loyalty Meanwhile, the tarmac staff have been increased from industry, as well as many Republicans and communities,” said James May, President and CEO programmes around several hubs, such as Brussels, 530 in 1998 to 582 in 2004. Democrats in the House and Senate, promised the of the ATA. Paris, Heathrow and Frankfurt. Earlier, the airline said that all the three safety Bush proposal would have a rough ride in coming Deborah McElroy, President of the Regional Airline “It is high time we went beyond national borders,” procedures had been ignored when the accident months as the budget debate wends it way through Association, said small communities will be Peépy told a German newspaper. Synergies could occurred on 1 February, and that if even one of them Congress. The strongest opposition among particularly hard hit by the proposed security tax: bring savings to the operators, although it is too had been respected, the fall could have been avoided. lawmakers came from those representing rural areas “Many cities have already seen a decrease in flights early to put numbers on them. The 35-year-old attendant and mother of two young where travellers effectively denied non-stop service as airlines were forced to eliminate services because The project could also, however, reignite the feud children, Laurence Brenier-Claude, died from her to most destinations would be forced to pay the full of higher security fees. Regional airlines provide the between SNCF and Air France. The two chiefs, injuries the next day. multiple-leg fees specified in the budget proposal. only air service to 72 per cent of US cities. The Louis Gallois and Jean-Cyril Spinetta, made peace Disciplinary action was started against the tarmac Passengers needing to connect through hubs would proposed tax will make it even harder to continue to after Spinetta said that subsidised domestic rail worker who removed the stairway, which brought also have to pay twice the fees of those flying non- fly to many of the small and medium-size services were a more serious competitor than low- the unions out on strike at the beginning of the Paris stop between larger cities. communities.” cost airlines. But not only does RailTeam closely winter school holiday. Management said the lightening Under the Bush proposal, airline travellers would National Business Travel Association President Carol echo the Air France alliance SkyTeam, but Peépy stoppage was illegal, but the unions denied this since shoulder 73 per cent of total government funds for A. Devine said: “Travel security is national security said the reason behind it was ‘to fight the common Air France is no longer in the public sector. By law, airport security screening. They currently pay an and should be funded by the government just as enemy: the plane’. advance notices have to be filed for public sector estimated 36 per cent. other national security programmes. Travel is an Meanwhile, SNCF and Germany’s Deutsche Bahn strikes. A consortium of travel and tourism industry groups, essential component to the American economic are expected to sign an agreement in May for the The Foundation for Political Innovation, headed by including the Air Pilots Association, the Air Transport engine and should not be discouraged by yet Paris-Frankfurt route. The two operators, already former French Finance Minister Francis Mer, said that Association (ATA), the National Business Travel another tax.” partners in Thalys International, will create a failure to provide a minimum service in public Association and the Travel Industry Association of Traditionally, the presidential budget is hammered common fare structure and reductions between the transport should be punished. “Strikers continue to America, have all joined forces to fight the security into final shape by legislators in the House. The French and German cities. take precedence over users,” Mer said. fee increase. In a press release, the groups asserted process takes months.

Dark times

A ban on lighters in US airports and on airlines will come into affect on 14 April, says the Transportation Security Administration (TSA), and it is considering banning matches as the next step. Under the Intelligence Reform and Terrorism Prevention Act of 2004, Congress had already banned the butane lighter, but after further evaluations of threats, people will be prohibited from carrying any type of lighter in carry-on luggage. David M. Stone, Assistant Secretary of Homeland Security for TSA, said: “TSA is moving quickly to implement this provision passed by Congress. By creating policy to add lighters to the prohibited items list, we are closing a potential vulnerability in air travel security. “Travellers are a valuable partner in the screening process. If they pack smart and avoid bringing lighters to the checkpoint, passengers can accelerate the screening process and allow us to focus on those individuals and items that may be a threat to their flight.” Richard Reid, the so-called UK ‘shoe bomber’ (who packed his shoe with explosives and tried to light a fuse on a plane full of passengers) is an example of what could have been achieved with a simple cigarette lighter if he had not been stopped.

International Travel Insurance Journal www.itij.co.uk TRAVELMATTERS 15

No-frills cruising The day Greece Delays up in 2004

The easyCruise Baggage handling systems were flawed and late Federal Aviation Administration has to deal with, – the latest from stood still arrivals were on the increase last year according to a whether it holds 50, 150 or 350 passengers. The entrepreneur report by the Bureau of Transportation Statistics in more of these regional jets and small aircraft that Stelios Haji- the US. A series of enter the system, the more Ioannou – is problems from over- delays we’ll experience.” now taking crowded routes and With fares the lowest they bookings for mishandling baggage led to have been since 1988, more sailings in the an increase of complaints passengers and more planes Mediterranean since 2003. are having to be processed at this summer on A 22 per cent increase in airports, with resources often the good ship late arrivals over 2003 has stretched to the limit. easyCruiseOne. been recorded from the Hawaiian Airlines had the You have to biggest airlines. More best arrival performance, make your way Greek trade unions carried out the most significant passengers than ever are landing when they were to the Med to industrial action in the country in years on Thursday taking to the air with prices the lowest they have supposed to 93.8 per cent of the time, whereas hop onto the 17 March, as public utility and bank workers stayed been since 1988, according to the Air Transport Delta subsidiary Comair had the worst record, at ship, but airports at home and Greek transport came to a standstill. Association (ATA). 62.5 per cent. in Genoa and Nice make this fairly straightforward. Olympic Airlines cancelled most of its flights and David Stempler, President of the ATA, pointed to the One shamed flight, SkyWest Airlines Flight 6973 The first sailing of easyCruiseOne has been brought reduced its schedule to one flight per destination on frequency of smaller planes being a factor of the from Indianapolis to Chicago, was sited as being late forward to 13 May and will run until 15 October. If the day, as flight attendants and baggage handlers problems in 2004: “Each airplane is a unit that the 100 per cent of the time. the re-fit of the ship continues to keep to its staged a 24-hour strike. Many passengers arrived at timetable in Singapore, the date of the first cruise Athens Eleftherios Venizelos airport bewildered, as may even be brought forward to 29 April. they had no idea that the action was occurring. The one-week flexible itineraries along the French Inside Athens, the transport system ground to a halt and Italian Riviera, playgrounds of the rich and for four hours as workers stopped to march on the Screeners training in question famous, are aimed at independent-minded people Finance Ministry to demonstrate against high prices, Federal security screeners based at the Hartsfield- He said that he repeatedly refused to sign the in their 20s, 30s and 40s who haven’t considered a high unemployment and pension reforms. Jackson Atlanta International Airport, who are the last document, despite the supervisor’s demands, and as a cruise holiday before. Passengers can board and line of defense against terrorists smuggling weapons result he was transferred from the airport’s main depart anywhere along the route – which includes onto airplanes, are protesting that they are not only checkpoint to a smaller one. St Tropez, Cannes and Monaco – as long as they not receiving the correct training, but they are being John Summerour worked at the airport’s main stay on the ship for at least two nights. The ship will forced to say that they are. Workers have said they checkpoint for two years and agreed with the premise arrive at each destination at lunchtime and will Qantas plans have been threatened with disciplinary action if they they were being bullied into signing: “If you sign for a depart in the early hours of the following morning, refuse to sign forms saying they have received the right week’s worth of training, you should get it. If you don’t allowing tourists to experience the nightlife of each further cost cutting amount of training, so reports The Atlanta Journal- sign it, you’re threatened with losing your job.” port. Constitution. Security Director for the Atlanta airport, Willie The 170-passenger, six-deck vessel has rather According to the latest figures, Qantas, Australia’s Screeners are required to have three hours a week Williams, explained that he saw the complaints by staff brightly coloured (make sure you pack your national airline, is one of the most profitable in training, but the fact is time is too pressured and they as a ‘misunderstanding’ and added: “They thought of sunglasses!) twin and quad rooms, as well as suites, the world, but at what cost to staff? By Roger only receive a few minutes on occasions. Clarence training as a more formalised thing and they didn’t think which are available from £59, £119 and £159 Allnutt Christian, one of the screeners based at the airports about briefings and other kinds of training.” respectively – all en-suite. Twins measure about 10 said: “I consider it fraud to sign for something I’m not He denied that screeners were being forced to falsify square metres and have two single beds that can be In times when many airlines are running up huge getting.” forms on the required training. put together. Quads measure 15 square metres and deficits and/or are on the verge of bankruptcy, have two sets of bunk beds and the 24-square- Qantas produced a net profit of AU$458.4 million metre suites have two single beds that can be put for the first half of the 2004-05 financial year, up together to form a double bed. The suites, which over 28 per cent despite a tighter global airline have windows, are situated on the top deck, and market. also have balconies. Rumours purporting that Some of this increased profit has been due to a passengers would have to clean their own rooms, concerted and sustained programme by the airline in penance for the cheaper cruise deals, is of course to cut costs – efficiencies of around $245 million untrue, but the fact is: if guests want their cabin were achieved in the first six months of this financial cleaned and bedding/towels changed, they will incur year. a charge of €15. The ship also houses a like- Despite this progress, however, Qantas is decorated – i.e. orange – café, sports bar and tapas continuing its programme of cost cutting with all bar. There is also an outdoor six-person jacuzzi on areas of the airline’s operations under review to the deck. identify areas and processes that could be further Like easyJet, the prices will rise depending on trimmed and made more efficient. demand, so it’s a case of booking well in advance. One area where the airline is sure to run into stiff opposition is the speculation that workforce numbers are to be cut or located to bases outside Australia. Already plans have been announced to Thai airports base more than 400 flight attendants overseas, with a new crew base just recently opened at Heathrow Airport in London. Unconfirmed reports suggest the predict growth airline could seek to shift about 7,000 staff overall – Thai airports will see a growth in passenger over 20 per cent of its workforce – to other numbers this year due to increased budget airline countries. traffic, despite the aftermath of the December Other speculation is that the airline would seek to tsunami. The construction of the new retrench 3,000 workers as part of its efficiency Suvarnabhumi Airport east of Bangkok, which will drive. Unions representing Qantas workers have handle an estimated 45 million passengers per year, vowed to fight against any wholesale retrenchments. shows confidence in the expected growth. AOT will The unions claimed that continued speculation operate the new airport, along with its existing five about job cuts and, hence, job security was very international airports in Thailand. detrimental to staff morale. The new airport covers 7,907 acres and is Thailand’s chance to become a regional aviation centre, rivaling Singapore’s Changi airport and Malaysia’s Kuala Lumpur International Airport. Budget airlines will likely see 4.8 million passengers in the fiscal year ending 30 September, up from 2.65 million from the year before. In line with this majority, state-owned AOT is set to make a net profit of 5.85 billion baht this fiscal year – an annual rise of 23 per cent, say analysts.

www.itij.co.uk International Travel Insurance Journal 16 AIR AMBULANCENEWS

Flight control

Virtually every pilot will experience a medical problem, Flight and without proper handling governmental grounding can be the result. David R. Hale examines the issues fitness that revolve around the medical pre-flight Most pilots realise that every aeromedical exam is they wish to resume flying. Provided you ground a potentially grounding event, yet too often they yourself, it may be wise to wait until you have don’t really believe this will happen to them. This proof you are fit to fly before presenting your presumptuous mindset may betray you, and the condition to the authorities. This approach may worst part of it all is that you can avoid many save both you and your AME time. grounding incidents with some minor preparation. There are many reasons that pilots leave the II – Practice for your flight exam aviation medical examination without a medical A pre-certification assessment is the best way to certificate. Sometimes this is due to a ‘known’ assure flight fitness. You should establish medical medical condition, and sometimes a medical eligibility before your aeromedical examination. condition that the pilot was not aware of is This way, if you do have a problem, the discovered. Far too many incidents involve a pilot paperwork that demonstrates your flight fitness is who is not even aware that a known medical in hand before the exam. Pre-certification condition spells grounding. In other situations, the assessments virtually eliminate premature pilot understands the significance of the condition, applications. As a result, valuable time once lost to yet he or she is unprepared for the lengthy deferred or denied applications is minimised evaluation and intricate paperwork that will follow. rather than commonplace. When presented with a disqualifying condition, the government requires the examiner to Pre-certification consultations in the US are document the condition and forward the available from numerous organisations: application to the governmental authorities. They will process the application and the typical response is Resource Service Provided How to Contact a form letter outlining the Aircraft Owners Information for 301-695-2000 prerequisites for certification. The pilot and Pilots members (www.aopa.org) has now been grounded for months! Association “Just lie about it!” This is a common Experimental Information and a 920-426-4800 and sometimes temporarily successful Aircraft network of AME (www.eaa.org) approach. However, the government Association advocates for members and your insurance company can heap Pilot Medical Information and 800-699-4457 some pretty stiff penalties for this. You Solutions, Inc. case managers (www.leftseat.com) could be reported through an which manage anonymous safety hotline. medical records Imprisonment, fines and certificate Virtual Flight Information (www.aviationmedical.com) suspension are punitive options at the Surgeons, Inc. and medical record governments’ disposal. If you have an management from accident, not only will the government board certified physicians get nasty but your insurance company may choose to not pay the claim.

Solutions III – Hire a professional

I – Get a regular exam from your If a jeopardising issue is discovered, engaging an personal physician aviation medicine professional is advisable. I am often asked if it is a good idea to use an Aeromedical experts have medical education, aeromedical examiner (AME) as a personal aviation credentials and a familiarity with physician. While this one-stop-shopping may be governmental bureaucracy. Some will even handy, the AME is an agent of the government provide pro-active support, such as retrieving, and, as such, is obligated to report your organising and submitting your medical records to condition. If you are reluctant to divulge a the government. Early preparation may spare you potentially grounding health issue, this may be an from the frustration of a lengthy grounding period indication that your doctor-patient relationship is or denial. While very few pilots are ultimately less than ideal. denied, many pilots suffer needlessly because they In the US, the Federal Aviation Regulations only don’t prepare or take advantage of help that is require pilots to report a medical condition when readily available. Don’t skip the pre-flight!

Helitalia certified LAR new technology Italian air rescue company Helitalia S.p.A has Luxembourg Air Rescue (LAR) has recently successfully fulfilled international quality requirements purchased three Zoll CCT M series defibrillators and has happily announced that it is now EN ISO and the Medipréma neonatal incubator. 9001:2000 certified. The ISO 9001 certification The Zolls bring together indicates that the air rescue company fulfils the superior biphasic international (ISO) requirements for quality systems. defibrillation, external The certification refers to Helitalia’s operation areas pacing, complete in public transportation, HEMS (Helicopter monitoring, a multiple Emergency Medical Services), SAR (Search and application printer and a Rescue) activities and aerial work. large full-colour display Helitalia has also introduced an internal quality all in a single portable management system to ensure continued unit, ideal for use in improvement within the company. “The ISO 9001 LAR’s helicopters and air ambulances. certification is recognised by all our customers,” Another upgrade in their medical equipment is the Raffaele Mollo, Helitalia’s Quality Manager, said. “In incubator, which is a lightweight portable unit that the future, we will especially concentrate on enables a fast warm-up of the newborn and improving our processes. We consider the system maintains a constant temperature whatever the controls the development of the company.” environment and the power supply used.

International Travel Insurance Journal www.itij.co.uk COMPANYBRIEF 17

Cruising insurance BA gets preferential How healthy is your Service for Schengen

Access America has developed a new travel insurance and assistance product, Cruise Plus, as an treatment lifestyle? visas alternative to insurance plans offered by select cruise lines. UK travel insurance The British Insurance Brokers’ Association (BIBA) QuoteWright.com, the US-based travel insurer, has “Travel agents have been asking for a company has joined forces with insurer FirstAssist to provide improved its service for travellers who need product like Cruise Plus as an alternative to Preferential has its members with access to a unique health and medical insurance in order to qualify for a visa to selling cruise lines’ insurance, which can be successfully secured lifestyle check from FirstAssist’s road to health visit Iceland or Norway, known as the ‘Schengen expensive and lack important benefits and a three-year programme, aimed at helping members tackle countries’. coverage,” said Beth Godlin, Senior Vice contract as the sole heart disease, obesity and other lifestyle Customers of President of Travel Markets at Access travel insurance issues and thus making positive changes QuoteWright.com can America. “Cruise Plus gives 100 per cent provider to British to improve their health. now compare and cash back to insured travellers if they must Airways (BA) and its The BIBA Health Check programme will view travel medical cancel their trip for a covered reason. subsidiaries, also provide access to services designed insurance plans that Many travellers don’t realise that the cruise including BA to support individuals and motivate them conform to the lines’ so-called cancel-for-any-reason policy Holidays. to take responsibility for their own health Schengen countries’ is usually refunded with partial cruise Keith Vipan, and wellbeing, thereby, hopefully, requirements, which credits that have stipulations and expiration Contracts Manager reducing the risk of potential future health insist on proof of dates. A credit ties up your money and of BA Holidays, said problems. medical insurance may expire before you can use it,” Godlin of the agreement: Tim Ablett, Chief Executive for FirstAssist, when applying for explains. “Statistics show that most “British Airways is commented: “This partnership follows their entry visa, by travellers cancel trips for covered reasons, delighted to be the success of the roadtohealth simply selecting the not because they just change their minds.” working with programme created by thehealthpeople option ‘Fulfil Visa Included in Access America’s Cruise Plus Preferential and ETI group and FirstAssist, which aims to help Insurance policy is: – International people achieve a better work-life Requirement’ when • 100 per cent cash back, not partial cruise credits, Travel Protection. This partnership will enable balance. Regular health checks can play starting a quote. when a cruiser cancels for a covered reason. British Airways to provide its customers with an an important role in maintaining a healthy “By selecting this • Coverage available for cruise line bankruptcy and exciting range of comprehensive and competitive lifestyle, as well as providing vital advice option, our system will supplier default. travel insurance products.” and guidelines on diet and fitness. As the only show the client • Waiver available for pre-existing conditions. Steve Nickerson, Managing Director of Preferential costs associated with sickness absence those plans that they • Coverage available for airline tickets bought Insurance, commented: “We are delighted to be rise, businesses must look at ways of qualify for and that separately from the cruise. considered as the most suitable travel insurance preventing sickness and managing the wellbeing of meet or exceed the Schengen visa requirement for The added incentive to travel agents is that they partner for British Airways and are confident that their staff, whilst encouraging employees to take an insurance,” explained John Cook, President of earn more commission by selling Access America’s we will deliver a complete travel insurance solution active role in improving their own health and level QuoteWright.com. “In most cases, clients will have plan over the cruise liner’s. “Agents are frustrated to satisfy the needs of their customers.” of fitness.” their choice of over 50 plans that meet or exceed by cruise lines’ low commissions on insurance. Plus, Marc Alex Ib Uhrenholt, Managing Director of ETI BIBA Chief Executive, Eric Galbraith, added: their requirements.” they need to have a strategy to replace dwindling – International Travel Protection, said: “We look “FirstAssist has a wealth of expertise in creating QuoteWright.com also recently announced a airline commissions,” Godlin noted. forward to servicing British Airways customers health check schemes, making it the perfect partner partnership with HTH Worldwide, an international Cruise Plus is currently available to passengers during a trip through our 24-hour assistance to launch the BIBA Health Check. Through this health insurance and medical assistance service. sailing on Carnival, Princess, Celebrity and Royal operation and our worldwide-located Euro- initiative, we are helping BIBA members look after “Consumers who visit our site can use our Caribbean cruise lines. Centres.” their health and make positive changes to their marketplace to do a side-by-side comparison of lifestyle. For added convenience, checks can be available plans and make clear and informed done in offices or in a chemist to ensure everyone decisions about coverage for their trip,” concluded can benefit from the BIBA Health Checks in a way Cook. Enabling insurance for disabled travellers that’s suitable for them.”

A charitable rehabilitation organisation in Canada, insurance source that can Ontario March of Dimes, has joined forces with address their individual needs.” Mondial online Ingle International to launch TravelAbility – a new Chairman of Ingle International, programme that makes travel insurance more Robin Ingle, added: “The goal Mondial UK has renewed its licences of Aequos accessible for people with disabilities. of the TravelAbility programme online from Defaqto, which provides the company Due to their special requirements, people with is to open up the world for with real-time access to a database of financial and disabilities often forgo holidays because of the hassle people living with disabilities insurance product data, to keep on the ball with involved in getting travel insurance, or they simply and their families. Finding travel what their competitors are doing. take a chance and go away without any insurance. insurance can be a barrier. The system combines product database with an “Ontario March of Dimes and Ingle International are Through TravelAbility, we can Internet application to give Mondial a way to aware that Canadians living with disabilities can face remove some of the barriers access, analyse and ensure that product knowledge specific challenges while travelling,” says Ron by helping people with is maintained against competitors. Steve Hook, Kelusky, Vice President and Chief Operating Officer disabilities find the right Director for Corporate and Travel at Mondial UK, for Ontario March of Dimes. “Through this new insurance product that not only commented: “This allows us greater insight into programme, people with disabilities will now be suits their needs, but their how we are positioned within the marketplace and able to turn to an experienced and trusted budget too.” to react quickly to any market changes.”

www.itij.co.uk International Travel Insurance Journal 18 NEWSANALYSIS Final call for stretchers

BA’ decision to axe its stretcher and incubator majority of industry insiders surprised and angered affected.” service has not been received well by the global by BA’s decision. And it is not a decision that is He added: “The basic travel insurance industry. Leonie Bennett and Ian limited to being a UK issue: it is not just UK citizens premise is ignoble: we will fly Cameron look at what the consequences of BA’s that will be affected, as BA’s stature as a global you wherever you want to action will be airline has brought business, and consequently go, but if your circumstance stretcher patients, from all corners of the world. changes through no fault of It’s certainly going to be a hectic time for the whole Speaking to ITIJ, Jon Philips from the British Medical your own to the extent that of the travel insurance industry. With only two Emergency Services Forum (BMESF) bemoaned: you can't fly seated, we won't months left until British Airways (BA) withdraws “I'm appalled that a national carrier such as BA can fly you back. Perhaps a clause stretchers and incubators from its aircraft, people take such a blatantly commercial decision, and it is to this effect will be inserted across the globe are about to feel the consequence blatant: a clear case of reducing the level of in BA's Conditions of of such a move. customer service on offer to avoid the risk of Carriage.” BA has said that the services were not economically potential delays and concomitant compensation BA does not, however, viable and caused an unacceptably high number of under the new EU legislation. I'm sure BA will say concur that it is a ‘flag delays (62 per cent of the aircraft that carried 719 the EU legislation was the last straw, that they had carrier’: "’Flag carrier’ is a stretcher cases in 2004 were subject to delay), and been looking to withdraw stretcher services for legacy term – it comes from it would seem that with the European Union’s (EU) years because of a perceived cost effectiveness a time when many of the new regulations regarding delay compensation, issue, but how many of us really believe BA do not European airlines were state- these delays could cost them a fortune in have the infrastructure to be able to ensure they owned. BA has not been compensation. Not so, we would contest, as – are charging enough for on-board medical services state owned since 1987. according to BA – delays apparently range from for them to at least break even? It appears BA took Whether or not we are the only minutes to a few hours. However, when the decision to withdraw stretcher services without flag carrier really depends on quizzed further by ITIJ, Cathy West, spokesperson attempting external consultation of any kind. I what you mean by this for BA, said the average delay was a mere 10 appreciate BA's management is entitled to take its phrase … We wouldn't minutes, which we at ITIJ feel is hardly a reason for own commercial decisions, but surely its position necessarily term ourselves the withdrawal of such an important facility. and the obvious effects on those involved in ‘the flag carrier’. However, we are the largest UK been far cheaper to repatriate people using BA, as This announcement has been on the agenda of repatriating the sick and injured should have led to airline and we do have the union flag on our tail US airlines tend to not carry stretchers. Even New most travel insurance committees recently, with the at least a minimum of consultation with those fins,” said Ms West. Zealand, which as about as far as you can get from BA’s home base, will feel the effects of the UK Is BA leading where other carriers will carrier’s decision. Scotty Watson, Managing follow? Director of South Pacific Air Ambulance, observed: For the majority of European destinations, an “We are fortunate enough to have Air New alternative carrier can be used for stretcher cases, Zealand, Qantas, Singapore and Thai airlines who and this is where insurers will need to rely on their all fly to Europe from here and do carry stretchers. assistance company, who in turn will need to rely However, BA’s announcement will have an effect on on their relevant aeromedical agent to search out repatriations from the South Pacific to other parts of the best substitute. However, the routes it is Europe that link through London.” thought will feel the brunt of the withdrawal of the The main potential setback for Europe will be if the medical facilities will be the long-haul flights to and other carriers, such as KLM, Iberia and Lufthansa, from the US, India and Africa. Particularly hard hit follow BA and decide also to stop carrying will be repatriations to and from the US: with stretchers. As Jakob Ringler from Tyrol Air healthcare costs so high in the country, it has often Ambulance noted: “It depends how many airlines will follow. At the moment, there is still enough choice to book stretchers on other airlines.” Whilst, at the present time, most airlines ITIJ has spoken to have confirmed they do not have any intention of stopping stretcher services, only time will tell if that is the case, or whether BA leads where others will follow. Lufthansa has assured ITIJ that they won’t be stopping their stretcher service any time soon and are, in fact, improving their medical service. Michael Lamberty from Lufthansa's Press Office said: "We are to continue using stretchers and, like BA did, we offer a service kit with the stretchers. We also have a patient transport compartment (PTC) for patients who need intensive care. In the near future, we will offer oxygen on all long-haul flights. "We have not experienced delays on the stretcher service aircraft. We liaise with the medical teams to ensure we are prepared in advance, and an escort is organised." Virgin has also said it will not be stopping providing stretchers for medical cases: “We have no plans to withdraw our stretcher service,”

International Travel Insurance Journal www.itij.co.uk NEWSANALYSIS 19

a Virgin spokesperson told ITIJ. But, time will tell, and there is, of course, the danger that as space becomes scarcer, prices will be driven upwards on other carriers. It would appear obvious that the insurance industry cannot sit around and watch to see what happens, but instead must come together to voice its concerns.

Using air ambulances If other carriers follow BA’s lead, the industry would be left with two options: either bring the insured back by air ambulance/air taxi, or leave the patient in the overseas medical facility longer until they are fit to return as a seated passenger. But before all air ambulance suppliers rub their hands together and rush out to order more aircraft, the question needs to be asked: Is air ambulancing a realistic option? As Julie Remmington, Director of Travel Insurance Suppliers Network, pointed out: “For those of you who have never travelled in an air ambulance, they are not as luxurious as you may think and generally mean a longer flying time. Landing and taking off is stressful for a patient at the best of times in a commercial aircraft, but multiply that with possible refuelling stops and the possible absence of family due to space constraints and you have already complicated the issue.” Sergio Avice du Buisson, Managing Director of Egres Medical Services, explained further the hesitancy of using air ambulances: “We always use commercial carriers to the UK if requested and if the patient is in a suitable condition for a commercial flight and not ventilated, for the following reasons: will be covered under the E111 system, which cycle of a case increases. Scott Marosek from Inter- use for stretcher repatriations. While their 1) A distance of some 9,000km would take our enables EU/EEA nationals travelling or staying Group commented: “The air ambulance market is importance to the global repatriation network, largest air ambulances – Hawker Sidley or temporarily in another state belonging to the limited in scope, so there is reason to believe particularly for stretchers, should not be under- Gulfstream 100 – five to six hours plus several stops European Economic Area (EEA) or Switzerland to underwriters could be stuck not only with higher estimated, we just have to get on with it and ensure more than the 11-hour non-stop flight offered by receive medical care should they become ill or have repatriation costs but also with additional stays in that the inconvenience is minimised for our clients, BA. 2) The costs would be, on average, five times an accident. But other nationalities won’t find it so hospital that are not necessary but are required until by ensuring we find suitable alternatives.” higher for us if we did not use a commercial flight. straightforward. there is aircraft availability. This would certainly be a The industry, however, is clearly somewhat shocked 3) The space offered by even the roomiest of our “Plus, there are the expectations of the insured’s consideration during peak travel season for the and taken aback by BA’s action. This is a little private aircraft really does take its toll after travelling family to consider, as well as the associated costs of Mediterranean basin.” surprising, since BA has been openly considering for several hours.” leaving a family member in a foreign country. In Add to this the demands of the family staying this move for some years, and had only delayed a The added issue for insurers to consider is the cost these days of consumer rights, are the general abroad for a longer period, and we may well find decision in the aftermath of the 9/11 attacks. Let’s implication. Air ambulances are not cheap, and an public going to accept that their loved one must stay that case fees increase to cover this additional work. also not forget that this is basically a commercial increase in use will only lead to greater claims costs, in a (state or private) hospital for an extra week or This will once again be extra expense to the insurer decision by BA. By this token, it is also not which ultimately will lead to higher premiums being two until commercial repatriation can take place? who will be left with little option but to pass some, inconceivable that BA might reinstate its stretcher charged – never a good thing for customers. Or are they going to demand air ambulances which if not all, of the additional expenditure back to the service at some point in the future, were it to prove when refused will lead to a complaint?” asks Julie general public in the form of increased premiums! expedient. Nevertheless, it would be wrong to The hospital option Remmington. Those at the sharp end of BA’s decision – such as underestimate the effect this will have on the Is leaving the patient abroad longer the answer Assistance companies will find their workload the specialist aeromedical travel agent – seem a little industry, and insurers, assistance companies and the then? If the patient is a European citizen and is in a increasing dramatically if insurers decide to leave more philosophical. Marc Lucas, Sales and like are bound to feel the effect of this in the state hospital whilst abroad they will not be costing people at the foreign hospital longer to recover. Operations Manager, Voyageur Aeromedical Travel, months from June. We wait with baited breath. the insurer a great deal of money, as the treatment Their costs will also increase as the average life reflected: “BA is just one of a number of airlines we With thanks to Julie Remmington

www.itij.co.uk International Travel Insurance Journal 20 FEATURE AA kickkick inin thethe BalearicsBalearics In part two of our feature series looking into the safety issues concerning popular island resorts, Vicky Baker takes a closer look at problems that occur for travellers to the Balearic islands

Sunshine can do strange things to people. It’s as if it infamous. On beams in and frazzles a few neurons. When we’re Internet forums, in holiday mode, it’s easy to be careless with hundreds of young belongings. When we’re in holiday mode, jet skiing, revellers are bungy jumping and banana boating all seem like a counting the days. great idea. For pure escapism – with an optional ‘Life ended early dose of hedonism – the Balearics are a hugely Sept 2004 R.I.P,’ popular destination. Last year, over 10 million writes ScouseChris tourists visited the islands of Mallorca, Menorca, on Shagalluf.com, Ibiza, and Formentera. ‘but life will be The Balearics are not known as risky destinations, restored April 2005. however. Crime is low and, according to the UK Is Maga ready for Foreign and Commonwealth Office, most visits are another seven ‘trouble-free’. Majorca’s capital Palma has been months of scouse lauded as ‘Barcelona without the street crime’; and chris?’ ‘Is is true a recent travel article in The Times wrote that there are 10 girls to Menorcan beaches are ‘every parent’s fantasy’, every guy?’ writes where ‘tastefulness goes hand in hand with safety’. one hopeful, whilst Nonetheless, in September/October, when hotel others sign off with occupancies drop alongside the temperatures, the personal desks of UK travel insurers, in particular, slowly start catchphrases, like piling up with paperwork. The usual claims are all ‘Life is made for there: rich food has caused stomach complaints; living and drinking running in the sand has led to sprained ankles; and CARLING’ and an uncanny number of ‘Rolex’ watches have been ‘BOOZE BOOZE lost on beaches. BOOZE – there’s no time to Drunk and disorderly SNOOZE’. With this much build-up, it is not scooters, and so forth. In the Balearics, even if you that could equate to six units. Everyone wants to forget their responsibilities and surprising that they let rip on arrival. don’t intend to get drunk, it’s easy to lose control. According to Perry Wilson, Director of Insure and unwind on holiday. But, in the Balearics, there is On a lads/ladettes holiday, the mission is to ‘pull’ as There’s no need to count in units when you aren’t Go, there are no grey areas with alcohol-affected also a minority of travellers who locals, and insurers, many members of the opposite sex as possible. A driving and there’s no work in the morning. And, insurance claims. “If you look at our insurance would love to wind back in. These are the travellers macho ethos comes into play, with guys doing all even if you tried, you might be hard pushed. Drinks policy,” he explains, “it says clearly that you will not who want to party, tan and throw caution to the they can to impress – even if that involves putting are poured with a generous hand and measures are be covered if you are ‘under the influence’ – i.e. wind. Daylong booze cruises and wild club nights themselves in danger by hanging off balconies, frequently abandoned. Consequently, if someone you are out of control due to alcohol. We have to have made resort towns like Majorca’s Magaluf diving into shallow swimming pools, pulling tricks on claims to have only had two vodkas in the Balearics, look at each individual case on its own merit. If you slip on the pavement after a couple of drinks, it may not necessarily be because of the drink. As an ex- rugby boy, I know people who can drink 12 pints of Guinness and act sober. But I also know some youngsters who have three pints of lager and are all over the place.” As in the UK, Spanish hospitals will only test for alcohol when it is essential: following a hit on the head; when surgery might be needed; when trying to establish a reason for unconsciousness; or when the police are involved. In the case of a minor injury, a patient will not have to specify how much they have drunk and it will not go on medical records. UNLESS they choose to and, on a holiday that is one long, alcohol-fuelled binge, many simply cannot resist the opportunity to boast. A UK doctor,

International Travel Insurance Journal www.itij.co.uk FEATURE 21

growing trend, it’s a highly plausible scenario, but insurers would probably request a police report as proof.

Crash and burn Balearic A&E departments also see no shortage of scooter accidents. Spanish law now requires all riders to wear helmets, but the age requirement is just 14 and no license is necessary. Tom, a 24- year-old sports statistician from the UK, remembers a lads’ holiday to Mallorca when he was 17. “I’d never ridden a bike before and yet, here I was, hurtling around country lanes with a group of my mates, on the wrong side of the road, after a few beers.” His recklessness amazes him now, but the story is typical. “At the time, it seemed so normal,” he adds. “Everyone was doing it.” “There are some companies that just give out the keys and leave them to it,” says Pablo, Manager of Magaluf’s oldest scooter hire who has worked in hospitals in the UK and company, MedPeds, established in Mediterranean, says, “I have seen that so many 1976. “These companies give the times. Patients can be the biggest hazard to business a bad reputation.” Having themselves. They give you more information then seen countless cowboy companies necessary, all because they want to brag about how come and go over the years, Pablo puts MedPeds’s In a recent poll by Cancer Research UK, 70 per them that much. The majority of visitors to the much they have drunk compared to their mates.” longevity down to their strict adherence to self- cent of 16-24-year-olds said they want to get a tan Balearics go on package deals and book insurance imposed rules. They never rent to anyone under on holiday – often abandoning sun protection. It’s through their travel agents.” This is certainly true, Highs and lows the age of 17 and all riders also have to prove they easy to misjudge the effects of the sun, but what if but for how long? Is a new trend emerging? In the But whilst it’s BOOZE, BOOZE, BOOZE in have ridden before, ideally on more than ten you fail to take proper precautions and end up chatrooms of Shagalluf.com and Magaluf, the party town of Ibiza has a reputation for occasions. “Most people who come to us lie when needing medical help? “We’ve all been there and MagalufUncovered.com, Web-savvy members are the stronger stuff. Back in the 1960s, Ibiza was a we ask,” says Pablo. “So we get round this by done that,” says Stuart Bensusan, Managing Director sharing tips on how to get the best deals on the chilled-out ‘hippy’ resort. Now, clubbers flock to testing them in the yard.” of online insurance providers Essential Travel Ltd. Net. Cheap airlines, like Air Berlin, have started San Antonio and Ibiza Town to experience its After 29 years in the business, he claims to be able “Effectively, it’s something we always cover. Yes, it is offering flights to Palma, Majorca, for as little as world-renowned dance scene. Last year, following to spot a liar from the minute they turn the key in preventable, but no one does it deliberately.” GB£13. This summer, more people can go to party, the news that the Madrid bombings were almost the ignition. “Our slogan is ‘We rent fun’,” he says, “18-30 types are definitely not an insurer’s dream,” on even less money, with even fewer worries. certainly financed by drug money, Spanish police “but we could add ‘No experience, no chance’.” adds Stuart. “But, to be honest, we don’t deal with Insurers beware. upped the stakes. CCTV cameras were installed in Unfortunately, every rider they deem unsafe can San Antonio’s streets and the biggest drugs bust in almost certainly find another ‘chance’ elsewhere. Balearic history was made when enough raw Away from the roads, the beach is a prime spot for material for 200,000 ecstasy pills was intercepted en accidents. Standard watersports (e.g. jetskis, route to the isles from Holland. Back in the UK, paragliding and the popular Balearic banana boats) clubbing magazine Mixmag warned readers that the are covered by most policies. But the sun itself can dangers of drug-taking extend beyond the physical be a tourist’s worst enemy. After a nice lie-in, many effect of the chemicals themselves: ‘If you take chose to hit the beach at 11A.M. – a time when drugs in Ibiza this summer, you deserve to know medical experts warn you should be seeking shade what you are paying for. More club tourists mean – and, after a heavy night, it’s all too easy to fall more gangsters to supply drugs, more drug-related asleep on the sand. If alcohol has left you crime and more clubbers going to jail than ever. dehydrated, you are even more likely to suffer from If a holidaymaker is ‘under the influence’ of drugs, it sunstroke. Katie, a former Mallorcan rep, is highly unlikely they will be covered by insurers. remembers: “I used to warn people about drinking Especially as medical records will almost certainly in the sun during the day all the time, but with a contain a blood toxicology report. poolside bar open from 10A.M., it was hard to stop “All A&E departments know the symptoms,” says them. Then it was up to me to get them to the Perry. “Most will take a blood test straight away, hospital the next day.” In the height of summer, because, until they know what’s in a person, they Balearic temperatures can soar above 30 degrees, can’t do anything with them.” The only get-out increasing the risk of Europe’s most common sun- clause for a claimant might be to say that their drink induced skin disease; which, although not exclusive was spiked. As newspapers have shown this to be a to the island, has been nicknamed ‘Mallorca Acne’.

www.itij.co.uk International Travel Insurance Journal 22 FEATURE Defensive medicine: paying for protection

for fear of being charged with negligence, claimed having made changes to the Has the world gone mad? Do medical incompetence or whatever trial lawyers can dream way they practice medicine for fear of personnel really need to make a up. patient complaints. The most common priority of self-protection against “Americans spend proportionately far more per changes were increased diagnostic liability over patient comfort, and person on the costs of litigation than any other testing, increased referrals, and take up more valuable time, money country in the world,” said the Assistant Secretary increased follow up. A study of UK and human resources in the name of for Planning and Evaluation of the US Health and psychiatrists reported a greater defensive medicine? Insurers will be Human Services Department last year in stressing likelihood of their using additional picking up the bill for unnecessary the need to ‘fix’ the country’s medical liability treatments, increasing observation treatments and to cover higher system. “This broken system of litigation is…raising levels and patient follow-ups as healthcare costs as a result. Milan the cost of healthcare that all Americans pay, defensive measures. Korcok looks at why patients are seen through out-of-pocket payments, insurance A study in New Zealand found general as such a threat and why insurers premiums, and federal taxes. Excessive litigation is practitioners making long-term changes should be concerned impeding efforts to improve quality of care. to the way they practice by adopting Hospitals, doctors, and nurses are reluctant to defensive medicine tactics, including When a report published in the Annals of report problems and participate in joint efforts to the withdrawal of certain services and Emergency Medicine revealed that almost one in improve care because they fear being dragged into avoidance of high-risk procedures. five emergency room physicians surveyed in lawsuits, even if they did nothing wrong.” And in the November/December Michigan had recently acquired guns and knives to According to the results of a Harris poll released in 2004 issue of the Irish Medical Journal, protect themselves against violent patients, the term 2003, 79 per cent of physicians say they order editor Dr John Murphy wrote: ‘defensive medicine’ took on a new and more more tests than are medically necessary and 91 per “Everybody needs a careful doctor palpable meaning. Certainly dramatic. Very pictorial. cent say they have seen other physicians do the when they are sick but nobody wants a defensive for healthcare technology race ahead unbridled. Ordinarily, ‘defensive medicine’ refers to doctors same; 74 per cent say they refer patients more doctor because the latter is primarily caring for In the US, the problem of defensive medicine – its doing unnecessary often than they would if based himself.” risk to patients as well as its burgeoning excess cost tests, procedures or only on their professional Certainly defensive medicine is not all bad. If – has become intensely political as a component of hospitalisations to judgement; 51 per cent suggest doctors and other providers are induced to be the medical malpractice/tort reform debate. protect against being invasive procedures such as more attentive to patients, keep better records, Recently, President George Bush placed tort reform sued by unsatisfied biopsies more often than they provide more appropriate diagnoses and near the top of his domestic agenda saying that the patients. But with the would if based only on their treatments, then only better healthcare can result. direct cost of liability insurance and the indirect cost costs of medical professional judgement; and 41 But when physicians and hospitals use time, from unnecessary medical procedures engendered malpractice premiums per cent of physicians prescribe technologies and resources only to protect by defensive medicine cost the US needless billions. soaring and with medications more often than themselves, regardless of their pertinence to His stated remedy is a cap on non-economic physicians and hospitals they believe are medically patients needs, then defensive medicine becomes damage awards of $250,000, a limit on punitive deferring treatment of needed – all for fear of being problematic, as a healthcare cost factor and as a damage awards, limits on the time allowed for an patients for fear of sued. Overall, says the poll, 94 negative influence on the culture of medicine itself. injured patient to file a lawsuit, and establishment of litigation, one wonders per cent of physicians, 66 per Commenting on the potentially negative influences a fee schedule for lawyer’s contingency fees. In fact, which of the threats is cent of nurses, and 84 per cent of defensive medicine, Dr Murphy noted: “Doctors a majority of states already have enacted more menacing. of hospital administrators believe who are excessively anxious will defer making malpractice award caps, most in the $250,000 to The crux of the matter that unnecessary or excessive difficult decisions and will avoid complex procedures $350,000 range. is that defensive care is provided because of the and operations. In the old days, medicine was safe The model for the Bush tort reform initiative is medicine will drive up fear of malpractice. but relatively useless. Nowadays it is complex, California, which in 1975 enacted the Medical Injury medical costs, may not As virtually all observers and effective, but potentially dangerous. High-risk Compensation Reform Act (MICRA), which limits be in a patient’s participants of American patients frequently need high-risk strategies and jury awards for pain and suffering to $250,000, and interest, and travel healthcare insurance can only healthcare readily admit, ‘defensive medicine’ has their outcome will be adversely affected if their also limits attorneys’ fees. Malpractice premiums rise as an end result. become part of the culture of healthcare delivery in doctors feel legally unprotected when caring for have been much slower to rise in California than To get to the root of the problem, we have to the nation, affecting every examination in a them. ‘Once burned, twice defensive’…” other states and many doctor ‘refugees’ from no- examine why the need for defensive tactics has physicians’ office, every visit to an emergency room, Striking at the heart of the matter – the serpentine cap, high-premium states have found California a arisen. every hospital admission, and every prescription involvement of the courts in American healthcare – salutary haven. written. And, as with so many trends American, it is Dr Murphy adds: “In US medicine, it is increasingly The Democrats, generously funded by America’s Culture of fear being absorbed into other cultures rapidly and stated that the clinical exam on its own is insufficient trial lawyers, scoff at the Bush estimates. They say In the US, where suing one’s doctor has become pervasively. because it cannot hold up in court. The consultation the direct costs of malpractice litigation are an art form, the practice of medicine has by its very needs to be supported by objective and often minuscule – well below one per cent of health nature become a ‘defensive’ enterprise – meaning International perspective expensive tests. Irish medicine is heading down the costs, and they charge that limiting awards to that physicians and hospitals dare not overlook any A study of 300 general practitioners in the UK, same road.” So is medicine in all other countries injured patients only hampers their right to justifiable test or procedure in diagnosing or treating a patient published in 1995, revealed that 98 per cent where the mythic expectations about the potential recompense when fighting giant hospital companies,

International Travel Insurance Journal www.itij.co.uk FEATURE 23

doctors, HMOs, insurance and pharmaceutical emergency departments. facilities in New York, New Jersey, Connecticut companies. In fact, trial lawyers and opponents of • In Miami, many obstetricians have responded to and Rhode Island were being forced to limit award caps continue to blame insurance companies skyrocketing malpractice premiums by ‘going bare’ patient access to some specialties. for unmanageable medical malpractice premiums. and dropping malpractice cover totally. Under And though studies of the extent of defensive They say doctors get charged higher premiums to Florida law, physicians without malpractice coverage medicine have, to date, been relatively rare in the make up for underperforming corporate earnings must simply post a sign to that effect in their offices. UK, a paper based on National Health Service from investments, or, on the other hand, to gather They then shelter all of their assets, including their (NHS) data and published in 2004 by Professor easy cash to put into stocks, bonds and other high- house and boat in their wife’s name and use the Paul Fenn, economist at Nottingham University gloss investments. state’s very liberal bankruptcy laws as a refuge Business School, concluded that “those hospitals against being sued. which faced a higher expected cost of litigation Premiums edging ever upwards • In Northern New Jersey and Cleveland, Ohio, were those which used (advanced diagnostic According to Medical Liability Monitor, a Chicago- where the malpractice climate has been volatile, imaging) tests more frequently after controlling for based newsletter some physicians have activity levels and case mix.” considered most dropped the appears to be ‘everything possible’. Does this mean authoritative on this obstetrical portion of What price defence? doing an MRI or CT scan on every patient who subject, the most “In the old days, medicine their practices, while Attaching a price tag to the extent of defensive complains of a headache? Or doing endoscopy at expensive location for others have stopped medicine practiced in the US is elusive. the first sign of gastric reflux? Or doing a biopsy for medical malpractice cover was safe but relatively performing high-risk Opponents of state caps on non-economic routine prostatic inconvenience? If so, the guidelines is South Florida, where useless. Nowadays it is procedures. damages argue that the payouts to aggrieved doctors follow in treating patients will continue to some obstetricians and • Dr Frank Jordan, a patients through malpractice awards are less than shift more in favour of defending themselves at the surgeons paid up to complex, effective, but vascular surgeon in one per cent of total healthcare expenditures and expense of doing what’s best for their patients. $280,000 for coverage last Las Vegas, left therefore don’t warrant the restraints tort reform As Dr Murphy wrote in the Irish Medical Journal, year. Florida recently potentially dangerous. practice because, as caps would entail. December 2004: “Defensive medicine is unhelpful adopted an amendment he said, “I did the But those pushing tort reform say it is not the direct to patients and unpleasant for doctors. It needs to that puts a constitutional High-risk patients math. If I were to costs of litigation that are the main generators of be curtailed. Mechanisms must be put in place that limit on lawyers’ fees and stay in business for defensive medicine so much as it is the indirect safeguard doctors diligently performing their difficult ensures that most of an frequently need high-risk three years, it would costs of a healthcare system held hostage by tasks. If they turn up to work daily with a sense of award goes to the injured cost me $1.2 million malpractice insurance that fewer and fewer seem apprehension, the current drift to defensive victim. strategies and their for insurance. I able to afford. medicine will continue.” Finding a middle road in obviously can’t afford The landmark study of this issue, carried out in There is no doubt that defensive medicine affects such a partisan issue is outcome will be adversely that. I’d be bankrupt 1996 by economists Daniel Kessler and Mark the quality of healthcare, can inflate the cost of difficult, but the non- affected if their doctors after the first year, McClellan* of Stanford University, concluded that healthcare, and the insurance sphere has become partisan Center for and I’d just be malpractice tort reforms such as those in effect in embroiled in a multitude of ways. Patients in foreign Studying Health System feel legally unprotected working for the California can lead to reductions of five to nine per hospitals, and their insurance providers, usually Change (CSHSC), based in insurance companies. cent in medical expenditures. With current make the priority repatriation to home shores, but Washington D.C., says that when caring for them. What’s the point?” healthcare expenditures in the US at approximately the fact is that, once admitted, a patient becomes whatever the causes of • Dr Cheryl $1.8 trillion, that would tally up to $90 to $162 the responsibility of the staff of the hospital and rapidly rising malpractice ‘Once burned, twice Edwards, a Las Vegas billion a year that could be saved, but instead is therefore falls mercy to all the policy, red tape and insurance “the obstetrician, left that being siphoned off by unnecessary, unwarranted testing that the hospital deems necessary. consequences are rippling defensive’…” city and moved to diagnostic procedures and treatments. (*McClellan Furthermore, what is becoming apparent is that the through communities, California (a state would later become administrator of Medicare). phenomenon of defensive medicine is no longer threatening to diminish with a $250,000 cap In this increasingly litigious society, it appears that limited to the US, and is gradually becoming patients’ access to care and increase healthcare on non-economic damages) when her premiums ‘acceptable’ standards of healthcare are more and international. This may be a problem that can’t be costs, with an uncertain impact on quality.” jumped from $37,000 to $150,000 a year. She left more being determined by the courts, thus the avoided simply by moving a patient from one According to a continuing CSHSC survey of 12 behind 30 pregnant women who had to find new fundamental determinant of ‘acceptable’ now country to another country. nationally representative communities, there is clear doctors. evidence that defensive • Abington, Pennsylvania, medicine is damaging Memorial Hospital closed the the quality and only trauma centre in availability of healthcare Montgomery County at the across the nation, that end of 2002 because more doctors are insurance carriers were not referring patients to willing to offer malpractice hospital emergency insurance to its doctors. departments rather According to documents from than treating them in the federal Health and their offices, are Human Services department: ordering excessive “Increasingly, Americans are at tests and services, risk of not being able to find a giving up high-risk doctor when they most need practices, refusing to one because the doctor has provide on-call emergency department services, given up practice, limited the practice to patients referring more patients to safety net hospitals and without health conditions that would increase the tertiary or academic health centres, and declining litigation risk, or moved to a state with a fairer legal elective referrals from safety net providers. system where insurance can be obtained at a lower In at least six of the 12 communities surveyed by price.” CSHSC, many obstetrician/ gynaecologists have Those conclusions are buttressed by a random stopped delivering babies altogether to lower their survey of 1,573 physicians in South Florida, which malpractice premiums, and others have showed that 44 per cent stopped performing high- concentrated deliveries among relatively few risk procedures, including some spinal surgeries and physicians in their groups to reduce overall liability treatment of chest wounds, 66 per cent were insurance premium costs. performing more tests to protect themselves from Among the citations from the CSHSC report: lawsuits, one in nine no longer had malpractice • In Little Rock, Arkansas, many family physicians coverage, seven of 29 radiologists stopped reading have stopped delivering babies, and many hospitals mammograms, and almost 31 per cent limited their in Phoenix, Cleveland, Seattle and Miami have also practice in hospital emergency rooms. dropped maternity services altogether. • In Orange County, California, south of Los Hospitals too turn to defence Angeles, more and more patients are being referred The American Hospital Association and the to safety net hospitals and academic health centres, American Society of Risk Management released a with low income patients – considered by many study showing that one third of hospitals saw an doctors to be more litigious – referred more often. increase of 100 per cent or more in liability • In some communities, physicians are referring insurance premiums in 2002, resulting in either a increasing numbers of patients after hours, or even curtailment or complete discontinuation of one during office hours, to hospital emergency service or another. departments where they receive a complete In January 2005, the Greater New York Hospital workup with emergency department physicians and Association released a report showing that the cost hospitals assuming the risk for bad outcomes. These of medical malpractice insurance to hospitals in questionable referrals not only generate additional New York City and neighbouring counties had health spending by physicians unfamiliar with their increased by almost 150 per cent since 1999, the patients, but they overstress already crowded most in the nation. And it added that medical

www.itij.co.uk International Travel Insurance Journal 24 WORLDMARKETS

Austria’s travel insurance industry is thriving and fully The hills are alive geared to reap the benefits of with the sound of new business European Union enlargement, as Roger St Pierre reveals

Austrians are inveterate travellers, just like their next-door neighbours and cultural cousins the Germans. Their homeland is a compact country of just 83,858 square kilometres, but it has a population of 8.2 million, with living standards remaining comfortably above the European Union average and the availability to most people of relatively high levels of disposable income. The Austrian people love to holiday abroad and currently make some 4.3 million trips beyond their national borders each year, spending around 3.6 billion in the process. The strength of the euro and weakness of the US dollar encourages Austrians to spend a considerable part of their five to six weeks’ paid annual vacation time on long-haul travel away from the shelter of the EU’s social security and healthcare systems – opening considerable scope for aggressive sales of travel insurance policies.

Budgeting for travel and insurance Traditionally money-minded, Austrians look for value for money but they are not afraid to spend and their conservatism tends to make them risk- focused and insurance-policy-amenable. Though the tragic events of 9/11 produced a hiccup that became almost a tummy rumble, outbound tourism to the US has rebounded strongly, making the Austrians 23rd overall in the list of arrivals at American destinations – which is a strong showing considering the relatively small population of the country. This represents a current growth rate in traveller numbers across the Atlantic of around 3.1 per cent per annum. The most popular Stateside destinations for Austrian visitors are New York, Florida, the Californian cities of San Francisco, Los per cent of Austrian travel abroad, while a further with a number of energetic new Angeles and San Diego, Las Vegas and the rest of 10 per cent are combined business and pleasure operators arriving on the scene and Nevada, and the Hawaiian islands. trips. competing aggressively for the goodwill Recent research indicates that Austrians travelling to Stiff competition among the major carriers and the of both travel agencies and travellers. the US are mainly from the upper middle-class arrival on the scene of low-cost airlines are keeping With the exception of older people, most segment and in the 20-50-year age bracket – and air fares attractively low and encouraging cross- Austrians prefer to travel abroad they stay for an average of around 11 days. Nearly border mobility. Return trips to New York can be individually and are happy to avail half of them are repeat visitors, with July and August purchased in Vienna for around €500, as against a themselves of self-drive car hire – clearly the favoured months for travel. Coming typical €900 fare from Frankfurt – even though the opening further insurance sales from a country with a strong social safety net, they flights are a couple of hundred miles longer each opportunities to cover personal accident are acutely aware of the wisdom of making way. and other risks that are expensive to buy insurance provision for the exposure faced when Constraints on business travel expenditure, leading at the destination, especially in America. visiting the US where even minor treatments can to shorter-haul flight patterns, reduced bed nights As they increase the frequency of their bust the budget and major accidents or sickness away and downgrading of airline seat class travel through taking a series of shorter become a major personal disaster. preference, have helped fuel the growth of low- breaks rather than one long vacation, Austrians also strongly favour the Caribbean islands cost airlines in Austria as elsewhere. Charter many Austrians are now opting for the and such sunshine South East Asian destinations as carriers are also benefiting from increased price cost savings offered by annual travel Thailand, Malaysia and Indonesia, while Australia is consciousness and a number are planning increased insurance policies. This, particularly, is a also popular among long-haulers. capacity. Competition in the package holiday sector growing section of the travel insurance Business travel presently accounts for around 30 has been heating up over the past few years also, industry in the country. The Austrian outbound travel market is wide open, with virtually no restrictions to travel and minimal visa requirements – tribute to the country’s generally neutral stance in most world affairs. While cash was king until comparatively recently, and credit cards somewhat derided as a sign that Internet and this has opened wide the travel the purchaser cannot really afford the purchase, insurance market. the use of cards has now become widespread, with Visa, MasterCard, Diners Club and When in Austria American Express being the most popular Inbound tourism is, of course, a cornerstone of cards, as elsewhere. Austria’s national economy. In 2002, the last Austrian travellers have a penchant for both complete year for which figures are available, the cultural and adventure travel, which are fast- direct value-added effects of incoming tourism growing market sectors, while cruising is also totalled an impressive €14.25 billion, which equates slowly catching on. Golf is becoming to a 6.6 per cent share of total GDP. increasingly popular and addicts are now opting According to the Tourism Satellite Account set up to spend holidays teeing-off in the sunshine, be by Statistics Austria and the Austrian Institute for the destination the Spanish Costas or the Economic Research (WIFO) on behalf of the inviting greens of Florida, South Carolina and Federal Ministry for Economy and Labour (BMWA), South East Asia. total spending within Austria on holiday and The country has an extensive and very much business travel and visits by friends and family promotion-minded travel agency sector but, as represented a €25.21 billion spend in 2002, with elsewhere, Austrian travellers are increasingly 53.8 per cent of that figure coming from non- putting together their own packages via the resident visitors, while 42.9 per cent was attributed

International Travel Insurance Journal www.itij.co.uk WORLDMARKETS 25

to resident travellers and 3.3 per cent to spending cent, with inflation running in recent years at less by residents in weekend and second homes. These than two per cent. spending levels are thought to be rising at a current Austria is a highly stable federal republic state with a level of 3.3 per cent annually. parliamentary democracy, and consists of nine And there’s plenty to attract those visitors. Besides independent federal states – Burgenland, Carinthia, its glorious countryside, Austria has a rich Lower Austria, Salzburg, Styria, Tyrol, Upper architectural heritage, with Baroque seen at its most Austria, Voralberg and Vienna – each with its own extravagant, provincial while hiking government. in the Both federal mountains and state laws in summer have been and skiing largely brought and other into line with wintersports the EU free- in the dark market norm, months are making prime business attractions. practices Then relatively there’s the familiar to amazing foreign musical companies, heritage such as bestowed insurance by the likes organisations, of Mozart, wishing to Beethoven, invest in the Haydn, Lizst, and the Strauss brothers – not to country. mention the enduring popularity of The Sound of Austria’s borders extend to some 1,682 miles, with Music. 509 miles shared with Germany, 291 with the Vienna is the vibrant national capital and the hub of Czech Republic, 267 miles with Italy, 220 miles not just Austria’s but Central Europe’s cultural life, with Hungary, 205 miles with Slovenia, 104 miles with its museums, galleries, lavish balls, superb with Switzerland, 64 miles with Slovakia and 22 buildings and prodigious musical life. Salzburg looks miles with Liechtenstein. A mountainous land, the much as it must have done when Wolfgang country’s highest peak is the 12,465 feet Amadeus Mozart was born there, and hosts a Grossglockner. world renowned annual musical festival, while Innsbruck’s imposing buildings are framed by snow- Insurance oportunities capped Alpine peaks. In the south, Graz is another In earlier times, Austria was the centre of the vast thriving metropolis. Hapsburg Austro-Hungarian Empire, which The Austrian people are of mainly Germanic origin, controlled Italy and most of the Balkans. That the remaining three per cent comprising Slovene, influence continues to this day and Vienna – which Croat and Turkish minorities. Roman Catholicism is is actually further east than Prague – is seen as a now the dominant religion, being followed by some strategically sited business base from which to tackle 78 per cent of the population. the market opportunities presented by not only And did you know, it was in Austria, not Paris, that such new EU members as the Czech Republic, the croissant was invented, its crescent shape Slovakia, Slovenia and Poland but neighbouring evoking the lifting of the great Turkish siege of countries such as Bulgaria and Romania, which are Vienna? queuing up for accession and whose own insurance companies were, until recently, in many cases, Free trade bankrupt state monopolies that continued to The country’s major trading partners are the underwrite policies for which they had made no neighbouring EU countries of Germany, Italy and technical provisions. This helps to explain the Hungary, along with the other major EU nations, country’s presently highly active insurance industry, with US and Swiss trade also significant. Total gross and as citizens of the region become increasingly domestic product currently stands at US$227.7 affluent and more mobile, a healthy travel insurance billion, which represents a prosperous US$27,900 sector is developing locally. GDP per capita. Open competition has been the guiding principle of Economic growth rate stands at around 2.9 per the European Commission in its efforts to create a

www.itij.co.uk International Travel Insurance Journal 26 WORLDMARKETS

been firmly established Association celebrated its 100th anniversary. Its in the country, members look forward to a healthy future, especially consistently accounting now the Eurozone is fully functioning and making for around 50 per considered consumer choice easier still. cent of total premium Close relations and a common language with volume. Since 1994, Germany give Austrian-based companies ample there have been more opportunities to tap into what, with annual premium than 250 applications revenues of US$543 billion, is the third largest from foreign insurers insurance market in the world. for FOS in Austria and With special insurers, banks, direct sales companies access was made and others seizing their opportunity, there has been simple because, from a noticeable emergence of new key players in the the mid-’Eighties on, industry. This increased competition has led to the relevant EC stagnant or reduced premium rates and profit directives were margins coming under considerable pressure. implemented on a Mergers and strategic alliances have been the result, fast-track basis in the along with some regrettable bankruptcies, but, form of numerous conversely, consumers have benefited from better amendments to the price to performance ratio. relevant Austrian laws. A wider range of products and more attractive prices But, in reality, there have emerged in the travel insurance sector. has been no sudden However, decreasing transparency has made it more rush of outside difficult for customers to consider like for like when European companies making their buying decisions as to what policy to into the Austrian purchase. insurance market, as The Austrian insurance industry has been slightly almost all the key constrained in recent times because of the sad international players baggage from the Nazi era which led, in April 2001, were already active in to the setting up by the 70 member companies of the country. the Austrian Association of Insurance Companies As a sophisticated and (VVO) of the General Settlement Fund, which modern business established a firm legal basis under which to settle sector geared to the open financial claims of Holocaust victims and offering a wide range their families. of customer- But in general terms, the future seems bright. As orientated services, Andreas Weiss, assistant to the board at Wiener with co-operative and Städtische Versicherung, one of Austria’s leading mutual insurers being insurers, puts it: “In this country, we are able to do community-wide European internal insurance market increase harmonisation across the EU and improve the leaders in the field of personal insurance more than merely follow trends – we can set them. by means of deregulation, abolishing national efficiency that works to the end-consumer’s provision, the Austrian insurance industry has We must think ahead as this 21st century unfolds, restraints of trade, and facilitating access to the advantage. benefited enormously from its well-established and can in good conscience regard the future as a market through liberalisation. The emerging free These principles have been working well in Austria, distribution channels. With a population of 1.7 common co-operative challenge for the industry, competition between companies and the reforms to through massive simplification of the licensing million, Vienna alone is big enough to be a true rather than as a fate dictated solely by competition.” supervisory and regulatory systems was designed to procedures. Foreign insurance companies have long capital of international importance, yet small enough to be manageable – with its glorious surrounding vineyards and open countryside making it an attractive relocation prospect THERE IS LIGHT ON THE HORIZON that has the added benefits of access to both fast- growing markets and a workforce already well versed in the financial services and insurance industries. On 18 May 1999, the Austrian Insurance

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International Travel Insurance Journal www.itij.co.uk HOTSPOTS 27

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Europe: The emerging terrorist threat

A new generation of transnational terrorists is November 2002, Osama bin Laden specifically being trained in the chaos of central Iraq, and the endorsed attacks on France, Germany, Italy and the threat it poses to the West – particularly UK. European countries – will only increase when the The 11 March 2004 bombing of a Madrid insurgency ends. IJET Travel Risk Management has commuter train and the numerous attacks the details reportedly thwarted in the UK (the former commissioner of the London Metropolitan Police Over the past several months, authorities in the said in December that at least eight attacks had UK, France, Germany, Italy and Switzerland have been averted) validate Europe’s strategic shift from taken increasingly assertive steps to stem the flow of neutral player to critical participant in the struggle European-based Islamic radicals travelling to Iraq to against terrorism. wage jihad. While the precise numbers of The European Union has taken numerous steps European-based foreign fighters in Iraq are toward improving intelligence and police unknown, these ‘jihadists’ are deeply worrying to collaboration following the Madrid train bombings. European officials. Additionally, European governments have increased In a 27 January interview with the Associated Press, efforts to impede the spread of radical Islam by French Defense Minister Michele Alliot-Marie cracking down on the most malevolent of the Bringing down the cost stated: “These French citizens who are prepared to radical imams. carry out suicide attacks in Iraq are people who The ideology that these zealots espouse is now a could one day carry out suicide attacks elsewhere. common bond for the children of immigrants who of repatriation That worries us.” are seeking a sense of belonging and incorporation William Pope, acting anti-terrorism co-ordinator at in an otherwise inhospitable society. The extremists the US State have likely migrated away from Contact: Marc Lucas, Voyageur AeroMedical Travel, Voyageur Buildings, Department, the eye of authorities to 43 Colston Street, Bristol BS1 5AX Tel: +44 117 921 0401 warned in early underground mosques. And February that concern for the spread of Fax:+44 117 925 5940 Email: [email protected] Western countries radicalism to vulnerable Islamic “now face a future converts in the prison system is in which young increasing. (The most notable persons, familiar example is the infamous shoe- with the West and bomber, Richard Reid, who raised in a tolerant was converted to a radical and open society, brand of Islam in prison, and may deliberately soon after his release was choose to brutally recruited to blow up a murder hundreds transatlantic flight.) of their fellow Over the past several years, citizens in Al-Qaeda and its affiliates have furtherance of sought maximum psychological what they see as impact by attacking symbolic their duty toward targets with a high probability a worldwide of significant civilian casualties. jihad.” The consensus among experts As battle- is that the next generation of hardened soldiers radical Islamic groups is home from war, these radicals are not likely to operating autonomously from the original Al-Qaeda return quietly to a life of underground mosques and network. It follows that these groups, for now, at petty crime. Rather, the sense of belonging to a least, are functioning with comparatively less great movement, the chance to strike back at the operational expertise, financing and co-ordination. societies that, in many cases, have failed to integrate For this reason, it is hard to imagine these disparate large (and growing) Muslim minority populations, groups pulling off a spectacular operation like the and the opportunity to violently draw attention to hijackings of 11 September 2001. Instead, these grievances common to much of Europe’s Muslim groups will be more inclined to detonate explosives population may be an alluring option for vulnerable packed into a car or truck in a high-profile area of a young men (or women) with little in the way of major city, perhaps using a suicide bomber. The future prospects. Further, the prestige of having Madrid train bombing shows the horrifying impact fought the mighty US war machine in the heart of that this post-Al-Qaeda generation can inflict with a the Islamic world will unquestionably increase their relatively simple operation. ability to recruit from the unemployed, disaffected In short, given the significant presence of and marginalised Muslim population. homegrown radical Islamic groups operating in Europe, the demonstrated motivation of these Base or target? groups to attack targets in European cities, the For decades, European governments, such as those vulnerability of most of these potential targets – of France, Belgium and the Netherlands, turned a such as the mass transit system, nightclubs and blind eye to their radical Islamic problems. places of worship – and the proven capacity of Epitomised by the French government’s ‘Sanctuary radical Islamic groups to undergo terrorist Doctrine’ (under which operations to support operations, attacks in Europe are highly likely. terrorist activity were tolerated as long as those While attacks could occur at any time, the threat operations were not turned on France itself), these will likely increase in the two-to-three-year time governments tried in vain to remain neutral in the frame. Once the tide turns against insurgents in war of ideas between Islamic fundamentalism and a Iraq, foreign fighters are likely to be first to leave the globalising, modern ‘West’. The flaws of this policy country. After they return home, they probably will were fully exposed when, in a videotape released in need a year to organise and plan domestic attacks.

www.itij.co.uk International Travel Insurance Journal 28 DICK’SHOTLINE Typical hotline cases

Running an international legal assistance Letters hotline can be varied work, but there are Send your letters to: The Editor, ITIJ, some typical trends that emerge, which Voyageur Buildings, 43 Colston Street, Bristol, BS1 5AX, UK resident US lawyer Dick Atkins illustrates (fax +44 (0)117 929 2023 or e-mail [email protected]) in his latest column We reserve the right to edit your letters and to cut them if neccessary.

Dear Editor, of savings on an adjusted claim is one option, as is a Often, the cases I notice from your January edition of ITIJ that fraud small ‘acceptance of case’ fee that is reimbursable we describe in prevention is one of the new ‘buzz’ topics. Some from the savings percentile should the investigation this column are might say ‘about time too’. Fraudulent baggage claims prove successful. dramatic, or, at and medical holidays are rife throughout the industry • The investigators should have the file at the earliest the least, and are far from limited to professional fraudsters. possible opportunity and preferably have initial somewhat The public at large seem to view insurers as fair game contact with the claimant. They should be competent unusual. Some and insurance fraud as a victimless crime. It isn’t, of to do an initial claims adjustment in-house. This readers are likely course, as it impinges on the costs and efficiency of relieves duplication of effort and affords continuity. to think, ‘those the industry at large, with all the consequent • The investigators should be ‘industry aware’, have things would implications for the consumer. linguistic skills and have a good handle on which never happen to Medical fraud tends to be more easily detected, as an channels of investigation produce the best results. me’. Experience assistance company devotes a lot more time and • Investigators should have good databases of suggests that resources to a given case than a claims company to a overseas agents, ranging from baggage handlers to they do. baggage claim. The reason for this is principally policemen, hoteliers to translators. Most investigators Routine calls economic and quite understandable. merely hire an overseas detective agency whose only typically fall into As a result, a huge proportion of fraudulent baggage advantage is geographic location. several claims undoubtedly slip through the net. The industry • The investigator should be able to handle claimant categories. response to this problem is that it is not economically feedback during an ongoing investigation. This saves Some callers viable to do much more than they do at the time for claimant, investigator and claims handler. It request assistance with legal problems arising at hotels, buses, planes and car rentals are so moment. This too is understandable given the also obviates the potential for ‘Chinese whispers’ and home or at work, which often have little, if any, numerous as to require many additional columns. current situation within the industry: provides continuity of personnel so often lacking in relationship to travel. Sometimes, callers present One caller related his ‘vendor’ tale of woe: The • Claims handlers tend to be young, relatively poorly claims departments. substantial legal problems, but for various reasons manager of the Hard Rock Café in Singapore paid and not always as well trained as they might be. • The investigator should be competent enough to they want to avoid their usual attorney. It is not insisted that at closing time (3:00 A.M.) the caller • Claims units as a whole are under stringent time produce a report that interests authorities, should the uncommon to receive calls from writers or others alone, and not his four companions, should pay the constraints. The aim is to shift as many claims as they insurer decide to pursue the matter. in the entertainment industry who have an significant tab. When the caller voiced an objection, can as quickly as possible. Whilst seasonal variations In a three-month period in the year 2003/2004, EPC international legal problem, but feel that their the manager had the caller roughed up and dragged are not as marked as they used to be, they still exist. was able to achieve a 100 per cent success rate for entertainment lawyer would not know how to across the room. He was literally forced to sign his This leads to periods of backlog when the pressures one particular insurer, including police involvement in proceed, or from business executives seeking credit card. cited above increase even more. two cases. Thirteen files involving forty-one claimants assistance with such diverse matters as sex or age As a result of this caller’s prompt connection to our • Claims handlers, as opposed to assistance co- were submitted and the total savings to the insurer, discrimination complaints, or even the enforcement hotline, we instructed him to immediately file a ordinators, have little – if any – linguistic skills or net of EPC commission, was £31,000.00. If this is of non-competition clauses. These are certainly not report with the police, before the manager could general geopolitical awareness. For example, quite extrapolated to one file a week for a year, total the type of calls one envisions as ensuing from a file his own. Such a complaint by the manager often police reports in a foreign language are savings would come to £124,000.00. It can work and 24-hour travel insurance industry-related hotline could have easily resulted in the caller’s arrest in a accepted as evidence of fact, without much, if any, it should work. It just needs to be done right. service. jurisdiction where caning, a very painful form of effort being made to ascertain what the report Other people call with complaints about their credit corporal punishment, is widely used even for minor actually says. No one talks to the policeman who Best wishes card company or against their travel agent, or even infractions. wrote it. Eileen Porter their assistance company. These callers often hide We also instructed the caller to document the • Insurers are worried about adverse publicity in the Jan Dalrymple or disguise the true nature of their call until they events in detail, to record the names and contact face of complaints to the Ombudsman and other EP Consultancy Ltd have the perceived safety of a one-on-one numbers of his ‘drinking buddies’, to seek any regulatory bodies. There is also the cost implication of telephone connection with our hotline attorney and needed medical attention, and to call us for further Ombudsman complaints. One of the best letters we have had! Here here… the confidentiality it brings. instructions in the morning. At that time, he could • The law seems to be of little help. The police are Richard Forsyth Callers give numerous reasons for their reluctance decide between a lawsuit and attempting to have reluctant to pursue fraudsters unless all the evidence Editor to speak to lawyers whom they had previously the manager reprimanded or fired through a is handed to them on a plate. EP Consultancy was consulted. Some are embarrassed to reveal complaint lodged with Hard Rock’s corporate recently told by one Police Force that such matters questionable occurrences to their family lawyer; headquarters. When the first option appeared to be are issues of civil law. They are not, they are criminal, and some are understandably reluctant to talk to a unavailable as a practical matter, he chose the but it demonstrates the general attitude. member of the law firm that represents their corporate complaint route. Unfortunately, he never As a result, insurers and claims handlers take one of employer. The anonymity of a legal hotline often contacted us to report the results of his corporate the following options with suspicious claims: Smile corner suits the purposes of a caller. contact. • Let it pass on the grounds that the amount of the The potentially embarrassing call might involve a ‘rip Some legal situations arise because of cultural claim doesn’t justify the expense of an investigation. An airliner took off from Sydney Airport. off’ or other negative incident that resulted from a differences, or ignorance of unfamiliar laws (No • Make an offer to the claimant. If the offer is After it reached a comfortable cruising sexual encounter, from excessive drinking, or from excuse!). One memorable case involved an accepted, this seems to be perceived as a victory for altitude, the captain made an announcement visiting a questionable entertainment district. American woman who purchased three masks at the insurers. It is no victory. Next year’s claim will over the intercom: “Ladies and gentlemen, Sometimes, sexual peccadilloes are the issue. One an outdoor bazaar in Turkey for US$20. Little did merely be inflated to take account of the discount. this is your captain speaking. Welcome to caller sought advice when he was apprehended by she know that one was a protected antiquity, and On the whole, the investigators have little knowledge Flight QF3, non-stop from Sydney to a police officer inside a massage parlor wearing that strict cultural Turkish antiquity laws could keep of the industry and only have a copy of the file to Honolulu. The weather ahead is good and we nothing but a sheet. For obvious reasons, he felt her in prison for many years, even for an work with. Their standard response is to visit the should have a smooth and uneventful flight. uncomfortable calling his family attorney. unknowing attempt to remove the mask from the claimant, discuss the claim and then submit a report Now sit back, relax and … OH, S**T!” Frequently, our calls involve traffic tickets, certainly country. Fortunately, her incarceration was relatively for a standard fee. Their remuneration is not results Silence followed. not potential dramatic stories for this column. short because of competent legal assistance, and driven. One recent report stated: “I visited the Then after a few seconds, the captain came Other commonly received calls include disputes she subsequently profited emotionally and financially claimant and found her to be a very nice young lady back on the intercom and said: “Ladies and with hotels, both vehicle and slip and fall accidents, from her book Never Pass This Way Again and the who had a lot of expensive clothes in her gentlemen, I am so sorry if I frightened you real estate questions, (especially arising out of film based on her travails Dark Holiday. Examples of bedroom.”…!! Needless to say, the earlier, but while I was talking to you, one of purchases of foreign time shares), and minor cultural-based legal prohibitions occur often in recommendation was that the insurers should pay the flight attendants brought me a cup of criminal violations, including shoplifting and alcohol- Muslim countries, but are also found in other the claim. The bill came to some £250.00. hot coffee and spilled it in my lap.” related events. popular travel destinations. Subsequently, the claim arrived at EP Consultancy, He chuckled and said: “You should see the Not infrequently, we receive calls from people who Travellers frequently find themselves in real legal who were able to achieve a different result. front of my pants!” feel they have been ‘ripped off’ (or worse) by jams, or in situations they perceive as constituting We believe that for fraud investigations to have an A passenger in economy yelled loudly: vendors, including tour operators or others legal problems – both of the emergency and the impact, there are a number of criteria to be met: “That’s nothing. You should see the back of involved in providing services connected with their routine variety. Most callers, nevertheless, are • Remuneration for investigators should be results mine!” holiday. In fact, the complaints we receive from relieved and pleased to have a quick source for a driven. A ‘no win, no fee’ scenario and a percentage travellers concerning tour operators, cruise ships, confidential legal consultation.

International Travel Insurance Journal www.itij.co.uk call +44 (0) 117 925 5151 To make an alteration to a listing email: [email protected] SERVICEDIRECTORY 29

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DRF German Air Rescue Raiffeisenstr 32 Tel (24hr): +49 711701070 [email protected] Frank Spirgatis 70794 Filderstadt Fax: +49 711701071 [email protected] Director, Fixed Wing GERMANY www.german-air-rescue.de Rainer Horcher Head of Alert Center

Egres Aeromedical Postnet Suite 82 Tel: +27 11 701 2172 [email protected] S.D. Avice Du Buisson Evacuation Services Private Bag X4 Fax: +27 11 701 2173 www.egres.co.za Managing Director Lanseria 1748 SOUTH AFRICA

Euro-flite Air Ambulance Helsinki International Airport Tel: +358 20510 1900 [email protected] Juani Missonen PO Box 187 Fax: +358 20510 1901 Coordinator/Programme Director FIN-01531 Vantaa FINLAND

FAI Flight - Ambulance International Flughafenstrasse 100 (GAT) Tel: +49 911 36009 0 [email protected] Sven Mueller D-90411 Nuremberg Fax: +49 911 36009 59 [email protected] Operations Manager GERMANY Mob: +49 174 344 5358 www.flightambulance.com Volker Lemke Director of Sales & Marketing

Global Air Response 7355 S Peoria Street Tel: +1 800 631 6565 [email protected] Tom Cox A3/ Suite 209 Intl. Tel: +1 303 858 9967 www.airresponse.net Director of Business Development Englewood Fax: +1 888 631 6565 CO 80112 Intl. Fax: +1 303 858 9968 USA

Global Medical Support Ullevaal University Hospital Tel: +47 22 96 50 50 [email protected] Otto Karud 0407 Oslo Telefax: +47 22 96 50 51 www.globalmedicalsupport.com Marketing Director NORWAY Tel(24 hr): +47 22 96 50 00 May Furuli Telefax(24 hr): +47 22 96 50 31 Operations Manager

Luxembourg Air Ambulance 175A, rue de Cessange Tel(24hr): +352 420 440 1 [email protected] Andy Breeden L-1321 Tel: +352 420 440 361 www.air-ambulance.lu Operations LUXEMBOURG Fax: +352 420 440 366 Louis Wright Sales & Marketing Manager

www.itij.co.uk International Travel Insurance Journal 30 SERVICEDIRECTORY To have your company listed in the Service Directory email: [email protected]

Medic’Air International 35 Rue Jules Ferry Tel: +33 1 41 72 14 14 [email protected] Dr Herve Raffin (Air ambulance and rescue, 93170 Bagnolet (Paris) Fax: +33 1 48 57 10 10 www.medic-air.com General Manager medical escort worldwide) FRANCE Dr. Francois Bouchereau Medical Director

Medical Jet Services & Partner Radetzkystr 19 Tel: +43 1 713 2799 [email protected] W Dichtl Vienna Fax: +43 1 713 2799-19 www.medicaljetservice.com 1030 24hr Tel: +43 699 1570 1570 AUSTRIA 24hr Fax: +43 699 4570 1570

Medical Wings 222 Room 3602 Tel: +662 247 3392 [email protected] Jarin Kiatfuengfoo Bangkok International Airport Tel: +662 535 4735 www.medicalwings.com General Manager & Director Viphavadeo-Rangsit Road Fax: +662 535 4355 Sikan, Donmuang Bangkok 10210, THAILAND

Netcare 911 Aeromedical Netcare 911 House Tel: +27 11 254 1392 [email protected] Shane Marais 49 New Road Fax: +27 11 254 1405 www.netcare911.co.za Halfway House Midrand 1685 SOUTH AFRICA

Skyservice Lifeguard 9785 Avenue Ryan Tel: +1 514 497 7000 [email protected] David Ewing Air Ambulance Montreal Fax: +1 514 636 0096 www.skyservice.com Vice President Quebec International Business Development H9P 1A2 CANADA

South Pacific Air Ambulance NEW ZEALAND Tel: +649 256 9000 [email protected] Simon Barton AUSTRALIA Fax: +649 256 9111 General Manager Operations SINGAPORE

Swiss Air Ambulance/REGA PO Box 1414 Tel: +41 333 333 333 [email protected] Walter Stunzi Zurich - Airport Fax: +41 44 654 3590 www.rega.ch PR/Marketing Manager CH-8058 SWITZERLAND

Tyrol Air Ambulance PO Box 81 Tel: +43 512 224 220 [email protected] Jakob Ringler A-6026 Fax: +43 512 288 888 www.taa.at Managing Director Innsbruck Airport AUSTRIA

AIR AMBULANCE INTERIOR Air Ambulance Technology A-5282 Tel: +43 7722 85051 [email protected] Egon Kuntner Ranshofen Fax: +43 7722 85051-22 www.airambulancetechnology.com President AUSTRIA

ASSISTANCE COMPANIES AMREF Flying Doctor Service Wilson Airport Tel: +254 20 600 090 [email protected] Dr Bettina Vadera Langata Road Tel: +254 20 315 454 [email protected] Doctor/Medical Director PO Box 18617 Fax: +254 20 344 170 www.amref.org Sean Culligan Nairobi Mob: +254 733 639088 Operations KENYA

Antalya Assistance Muratpasa Mah. Tel: +90 242 243 6219 [email protected] Murat Arslanoglu Adnan Menderes Bulvari No 19 Fax: +90 242 248 7724 www.fempatr.com Network Manager Gazihan K:4 D:21 Antalya TURKEY

ARC Transistance 11 Avenue Pleiades Tel: +32 2 776 04 70 [email protected] Hans Biekmann B-1200 Brussels Fax: +32 2 776 04 99 [email protected] Network Director BELGIUM www.arctransistance.com Gabriel Goldberg Travel Assistance Sales Manager

Asistur Paseo del Prado Tel: +53 7 866 4499 [email protected] Emilio Guevara Fernández 208 e/ Colón y Trocadero Fax: +53 7 866 8087 www.asistur.cu Managing Director Habana Vieja Nestor Silva Pérez Ciudad Habana Assistance Manager CUBA

Assured Assistance Inc. 6880 Financial Drive UK Toll Free: +080013872487 [email protected] Martha Turnbull Mississauga Toll Free: +18003872487 Director of Operations Ontario Tel: +1 905 816 2495 L5N 7Y5 Fax: +1 905 813 4719 CANADA

Atlantic Assist Rua da Alfândega no10-2.oD Tel: +351 291 214 200 [email protected] Adriano Gouveia Medical & Assistance Services PO Box 750 Fax: +351 291 214 202 www.atlanticassist.com Operations Manager 9000-056 Funchal Medical(24hr): +351 965 013 938 Dr E Açafrão Madeira Ops.(24hr): +351 963 443 339 Medical Director PORTUGAL

Connex Assistance Egypt Office 11 Tel(24hr): +2 02 336 0005 [email protected] Lara Helmi 1st Floor Fax(24hr): +2 02 762 0003 www.connexassistance.com International Network Director 6 Sad El Aali Street Dokki, Cairo EGYPT

International Travel Insurance Journal www.itij.co.uk call +44 (0) 117 925 5151 To make an alteration to a listing email: [email protected] SERVICEDIRECTORY 31

Customer Care Pty Ltd Level 3 Tel: +612 9202 8222 [email protected] Janine Benson 60 Miller Street Fax: +612 9202 8220 www.customercare.com.au Operations Manager North Sydney 2060 Dr Howard Roby NSW Medical Director AUSTRALIA

First Assistance PO Box 17-310 Tel: +64 9 356 1650 [email protected] Mary-Jo McDonald Greenlane Fax: +64 9 525 1278 www.firstassistance.co.nz Sales & Marketing Manager Auckland NEW ZEALAND

Global Excel Management 73 Queen Street, Euro tel: +1 819 566 1130 [email protected] Brian Allatt Lennoxville, Quebec, NA tel: +1 866 566 1130 www.globalexcel.ca Executive Vice President J1M 1J3, CANADA Fax: +1 819 566 8335 Christine Francis-Herrin 4242 Cranmore Court Director of Business Development Belle Isle, FL 32812, USA

Global Voyager Assistance PO Box 11 Tel: +7 095 775 0999 [email protected] Costas Danilenko 125124 Fax: +7 095 775 0998 [email protected] CEO Moscow Cyprus tel: +357 24 62 5099 [email protected] Maria Berkova RUSSIA Cyprus Fax: +357 24 62 5065 www.gva.ru Business Development Manager

Goral Assistance Corex House Tel: +97 299 579 930 [email protected] Natalie Gankin PO Box 12815 Fax: +97 299 579 931 www.goralassist.com Network Manager Hertzlya Industrial Park 46733 ISRAEL

LuzDoc International Rua 25 de Abril, 12 Tel: +351 282 780 700 [email protected] Dr Maria Alice Silva Medical Service Ltd Villa da Luz Fax: +351 282 780 709 www.luzdoc.com Medical Director 8600-174 LUZ LGS PORTUGAL

Medex Assistance Corporation 8501 LaSalle Road Tel: +1 410 453 6300 [email protected] Linda McGee Suite 200 Fax: +1 410 453 6301 [email protected] SVP of Sales Baltimore [email protected] Rob Moore MD 21286 www.medexassist.com Director of Business Development - UK USA

Medical Wings 222 Room 3602 Tel: +662 247 3392 [email protected] Jarin Kiatfuengfoo Bangkok International Airport Tel: +662 535 4735 www.medicalwings.com General Manager & Director Viphavadeo-Rangsit Road Fax: +662 535 4355 Sikan, Donmuang Bangkok 10210 THAILAND

MK International 95, Ioanninon Street Tel: +30 210 5154600 [email protected] Minas Kaloumenos Emergency Services 10444 Athens Fax: +30 210 5131660 General Manager GREECE

SER Assistance Ltd 50/2206 Dizengoff Street Tel: +972 544 370 002 [email protected] Dr S Zareceansky Dizengoff Tower Fax: +972 3629 1991 General Manager & Director 64332 Tel-Aviv ISRAEL

SOS-Hungary Assistance Company Csalogany Street 4/D Tel: +36 1240 0475 [email protected] Dr Peter Felkai Budapest Fax: +36 1439 1440 www.soshungary.hu Medical Director H-1015 HUNGARY

South Pacific Air Ambulance NEW ZEALAND Tel: +649 256 9000 [email protected] Simon Barton AUSTRALIA Fax: +649 256 9111 General Manager Operations SINGAPORE

TBS Team 24 d.o.o. Ljubljanska Ulica 42, Tel: +386 2618 2301 [email protected] Tomaz Bezensek 2000 Maribor Fax: +386 2618 5800 www.tbs-team24.com Marketing Manager SLOVENIJA Edvard Hojnik (covering Croatia, Bosnia and Herzegovina & Serbia) Director

TMCA 217 Broadway Tel: +1 212 964 8580 [email protected] Margaret Whartom Suite 600 Fax: +1 212 406 1520 www.tmcatravel.com Operational Manager / VP Travel Division NYC NY 10007 USA

VeriSafe International Ltd Unit B, 6/F Tel: +825 3110 1488 [email protected] Francis Chan Lippo Leighton Tower Fax: +852 3005 4760 www.verisafehk.com Chairman 103-109 Leighton Road www.verisafegroup.com Causeway Bay, Hong Kong CHINA

World Travel Protection 400 University Avenue Tel: +1 416 977 3565 [email protected] Dr Ron Mayer Canada Inc. 15th Floor Fax: +1 416 205 4676 [email protected] President & Chief Medical Officer Toronto www.wtp.ca Lambert Boenders Ontario M5G 1S7 VP Operations & Customer Relations CANADA

www.itij.co.uk International Travel Insurance Journal 32 SERVICEDIRECTORY To have your company listed in the Service Directory email: [email protected]

CLAIMS MANAGEMENT

Global Excel Management 73 Queen Street, Euro tel: +1 819 566 1130 [email protected] Brian Allatt Lennoxville, Quebec, NA tel: +1 866 566 1130 www.globalexcel.ca Executive Vice President J1M 1J3, CANADA Fax: +1 819 566 8335 Christine Francis-Herrin 4242 Cranmore Court Director of Business Development Belle Isle, FL 32812, USA CRITIAL CARE PATIENT TRANSPORTATION

Lufthansa German Airlines FRA SQ/B Tel: +49 172 367 7929 [email protected] Doris Ehring (Patient transport compartment) Frankfurt Airport Fax: +49 69 690 58147 Key Account, Product & D-60546 Process Management GERMANY

FUNERAL DIRECTORS

Defin Funeral Services Muratpasa Mah. Tel: +90 242 248 8389 [email protected] Murat Arslanoglu Adnan Menderes Bulvari No 19 Fax: +90 242 248 7724 www.fempatr.com Network Manager Gazihan K:4 D:21 Antalya TURKEY

Funeraria Officia Roberto Zega Via Clelia 26-28 Tel: +39 067 840 300 [email protected] Cristina Zega Roma Fax: +39 067 802 488 www.zega.it General Manager ITALY

Funeralcare International 221 Upper Richmond Road Tel: +44 20 8788 5303 [email protected] Mike Johanson Putney Fax: +44 20 8788 2525 London SW15 6SQ UK

Global Networks Funeral Assistance 22 Falcon Crescent Tel: +44 208 350 0645 [email protected] Cristina Almudi Enfield Fax: +44 208 482 0742 www.globalnetworksfa.com Managing Director EN3 4LT UK

Kenyon Christopher Henley 83 Westbourne Grove Tel: +44 20 7313 6920 [email protected] Christopher Henley Bayswater Fax: +44 20 7313 6999 www.kchrepatriation.com Managing Director London W2 4UL UK

MK Funeral & Transportation Services 95, Ioanninon Street Tel: +30 210 5154600 [email protected] Minas Kaloumenos 10444 Athens Fax: +30 210 5131660 General Manager GREECE

Rowland Brothers International 299 - 305 Whitehorse Road Tel: +44 20 8684 2324 [email protected] Steve Rowland West Croydon Fax: +44 20 8684 8000 www.rowlandbrothersinternational.co.uk Tony Rowland Surrey CR0 2HR UK

Servilusa Agencias Funerarias SA Tel: +35 121 470 6300 [email protected] Vanda Castro International Department Fax: +35 121 470 6499 www.servilusa.pt Manager International Dept. Rua do Entreposto Industrial 8-2º Esq, 2610-135 Amadora PORTUGAL HEALTHCARE CLINICS

Number One Health Group 1 Harley Street Tel: +44 207 307 8756 [email protected] Dr Charlie Easmon (Incorporating Travel Screening London W1G 9QD Fax: +44 7092 196 169 www.executivescreen.com Director Services and Exectutive Search) UK

HOSPITALS

Hospital Clinica Benidorm Avenida Alfonso Purchades 8 Tel: +34 96 585 3850 [email protected] Ana DaPaz Brown 03500 Benidorm Fax: +34 96 586 4345 www.clinicabenidorm.com Medical Director Alicante SPAIN

INTERNATIONAL GROUND TRANSPORT CO-ORDINATOR

Parkview EMS Ltd 5770 Timberlea Blvd. Tel: +1 905 629 7557 [email protected] France Paquin Suite 201 Fax: +1 905 629 1927 www.parkviewems.com Mississauga Toll Free: +1 888 795 9570 Ontario L4W 4W7 CANADA MEDICAL COST CONTAINMENT

ChargeCare International PO Box 18 Tel: +44 1409 261 368 [email protected] Philip Marshall Holsworthy Fax: +44 1409 261 633 www.chargecare.co.uk Director of Operations EX22 7WB UK

International Travel Insurance Journal www.itij.co.uk call +44 (0) 117 925 5151 To make an alteration to a listing email: [email protected] SERVICEDIRECTORY 33

Global Excel Management 73 Queen Street, Lennoxville Euro tel: +1 819 566 1130 [email protected] Brian Allatt Quebec, J1M 1J3, CANADA NA tel: +1 866 566 1130 www.globalexcel.ca Executive Vice President 4242 Cranmore Court Fax: +1 819 566 8335 Christine Francis-Herrin Belle Isle, FL 32812 Director of Business Development USA

Global Medical Management 7901 SW 36th Street Tel: +1 954 370 6404 [email protected] Raija Itzchaki Suite 100 www.gmmusa.com Assistant VP Marketing Davie FL 33328 USA

Hygeia Corporation 15500 New Barn Road Tel: +1 305 594 9291 [email protected] Joe Radigan Suite 200 Fax: +1 305 594 9201 www.hygeia.net Chief Operating Officer Miami Lakes FL 33014 USA

Intercontinental Corporation 5975 Castle Creek Parkway Tel: +1 317 806 2000 [email protected] Karla Kreger Suite 100 Fax: +1 317 806 2033 www.us-icc.com Manager, New Business Integration Indianapolis IN 46250 USA

Medsave USA 1400 Old Country Road Tel: +1 516 622 1700 [email protected] Donald Moyle Suite 109 Fax: +1 516 622 1733 www.medsaveusa.com Chief Marketing Officer Westbury NY 11590 USA

Star Healthcare Network, Inc. 850 Seventh Avenue Tel: +1 212 581 8228 [email protected] Gigi Galen Suite #803 Fax: +1 212 581 8272 www.starhealthcarenet.com President New York 10019 USA

TMCA 217 Broadway Tel: +1 212 964 8580 [email protected] Margaret Whartom Suite 600 Fax: +1 212 406 1520 www.tmcatravel.com Operational Manager / VP Travel Division NYC NY 10007 USA MEDICAL ESCORT ON COMMERCIAL AIRLINES

Air Ambulance Worldwide Inc. 35246 US Highway Tel: +1 727 781 1198 [email protected] Mark Jones 19 North #210 Fax: +1 727 786 0897 www.airambulanceworldwide.com President Palm Harbour Florida 34684 USA

AMREF Flying Doctor Service Wilson Airport Tel: +254 20 600 090 [email protected] Dr Bettina Vadera LangataRoad Tel: +254 20 315 454 [email protected] Doctor/Medical Director PO Box 18617 Fax: +254 20 344 170 www.amref.org Sean Culligan Nairobi Mob: +254 733 639088 Operations KENYA

Global Air Response 7355 S Peoria Street Tel: +1 800 631 6565 [email protected] Tom Cox A3/ Suite 209 Intl. Tel: +1 303 858 9967 www.airresponse.net Director of Business Development Englewood Fax: +1 888 631 6565 CO 80112 Intl. Fax: +1 303 858 9968 USA

Medic’Air International 35 Rue Jules Ferry Tel: +33 1 41 72 14 14 [email protected] Dr Herve Raffin (Air ambulance and rescue, 93170 Bagnolet (Paris) Fax: +33 1 48 57 10 10 www.medic-air.com General Manager medical escort worldwide) FRANCE Dr. Francois Bouchereau Medical Director

Medical Wings 222 Room 3602 Tel: +662 247 3392 [email protected] Jarin Kiatfuengfoo Bangkok International Airport Tel: +662 535 4735 www.medicalwings.com General Manager & Director Viphavadeo-Rangsit Road Fax: +662 535 4355 Sikan, Donmuang Bangkok 10210 THAILAND

Parkview EMS Ltd 5770 Timberlea Blvd. Tel: +1 905 629 7557 [email protected] France Paquin Suite 201 Fax: +1 905 629 1927 www.parkviewems.com Mississauga Toll Free: +1 888 795 9570 Ontario L4W 4W7 CANADA

www.itij.co.uk International Travel Insurance Journal 34 RECRUITMENT

Diary dates

10-12 April 21-Apr-05 2005 AAIS Annual Conference Professional Negligence and Liability Sponsored by the American Association of Insurance Conference Services An in-depth examination of the legal and insurance L’Auberge Resort & Spa issues, recent developments and current trends in the Del Mar, California, US professional negligence and liability field www.aaisonline.com Café Royal Hotel,London, UK www.ibclegal.com/professionalneg05 13-15 April Product Management Skill & Techniques 27-29 April Seminar The Captive Choice Organised by Dorman Consulting Associates Alternatives to traditional insurance for companies Downtown Courtyard Hotel and clients Chicago, Illinois, US Las Vegas, Nevada, US www.irmi.com/seminars 17-19-Apr-05 Business Intelligence Forum 28-29 April Forum for banking, insurance and financial services NCIGF Annual Meeting JW Marriott Desert Ridge National insurance activites and support in various Phoenix, Arizona, US legal and administration matters. Boston, US 17-21 April www.ncigf.org The Risk & Insurance Management Society’s Annual Conference & 1-3-May Exhibition IRU 2005 Claims Workshop Philadelphia, Pennsylvania, US Organised by the intermediaries and reinsurance www.rims.org underwriters association Tucson, Arizona, US 18-19 April Pricing & Rate Making in Plain English 10-13-May Seminar Society of insurance Research – Spring Organised by Dorman Consulting Associates Workshops Downtown Courtyard Hotel Downtown Lakefront, Chicago, Illinois, US Chicago, Illinois, US

SERVICEDIRECTORY

MEDICAL PROVIDERS AMREF Flying Doctor Service Wilson Airport Tel: +254 20 600 090 [email protected] Dr Bettina Vadera LangataRoad Tel: +254 20 315 454 [email protected] Doctor/Medical Director PO Box 18617 Fax: +254 20 344 170 www.amref.org Sean Culligan Nairobi Mob: +254 733 639088 Operations KENYA

Atlantic Assist Rua da Alfândega no10-2.oD Tel: +351 291 214 200 [email protected] Adriano Gouveia Medical & Assistance Services PO Box 750 Fax: +351 291 214 202 www.atlanticassist.com Operations Manager 9000-056 Funchal Medical (24hr): +351 965 013 938 Dr E Açafrão Madeira Ops. (24hr): +351 963 443 339 Medical Director PORTUGAL

LuzDoc International Rua 25 de Abril, 12 Tel: +351 282 780 700 [email protected] Dr Maria Alice Silva Medical Service Ltd Villa da Luz Fax: +351 282 780 709 www.luzdoc.com Medical Director 8600-174 LUZ LGS PORTUGAL

Parkview EMS Ltd 5770 Timberlea Blvd. Tel: +1 905 629 7557 [email protected] France Paquin Suite 201 Fax: +1 905 629 1927 www.parkviewems.com Mississauga Toll Free: +1 888 795 9570 Ontario L4W 4W7 CANADA MEDICAL SCREENING Risck Solutions Ltd The Medical Centre Tel: +44 117 300 7007 [email protected] Simon Smart 238 Broomhill Road Fax: +44 117 300 7003 www.risck.co.uk General Manager Brislington Bristol BS4 5RG UK TRAVEL AGENTS Parkview EMS Ltd 5770 Timberlea Blvd. Tel: +1 905 629 7557 [email protected] France Paquin Suite 201 Fax: +1 905 629 1927 www.parkviewems.com Mississauga Toll Free: +1 888 795 9570 Ontario L4W 4W7 CANADA

Voyageur Aeromedical Travel Voyageur Buildings Tel: +44 (0)117 927 3554 [email protected] Marc Lucas 43 Colston Street Fax: +44 (0)117 925 5940 www.voyageur.co.uk General Manager Bristol BS1 5AX UK

International Travel Insurance Journal www.itij.co.uk ONTHEMOVE 35

Lu to manage Swiss New healthcare New group heads at CONTRIBUTORS Roger Allnutt is a freelance travel writer based in Canberra, Australia, and has material published Re Malaysia head for Groupama Zurich widely in magazines and newspapers in Australia and New Zealand. He travels widely both in Australia Swiss Re has engaged Mr Qin Groupama Insurances Zurich Financial and overseas. Lu as General Manager of the has appointed Alistair Services Group is to company’s Malaysia Branch. Mr Sclare as Head of shape up its human Dick Atkins is chief counsel for International Andrew Davidson, who has Healthcare. Alistair resources side with Recoveries, Philadelphia, which provides global legal assistance to the travel insurance industry. served as head of the branch joined the company the appointments of He is in charge of International Recoveries’ legal since 2002, is relocating to from FirstAssist and will Harald Stoehr, hotline and has been involved in handling international legal incidents for the past 20 years. Swiss Re in Australia to take up report to Philip Bird, pictured right, to He can be reached via email on a client management role Director of Non Group Head of [email protected] there. Mr Lu was a Client Motor and Small to Human Resources and E. Randall Clouser, below, Manager for Swiss Re’s property and casualty Medium Enterprises to Group Chief Marketing Officer and Head of Vicky Baker is a freelance writer and editor. Her work has been published in numerous UK and business in Singapore, where he managed a growing Underwriting. Alistair Corporate Communications. international magazines. She is assistant editor of portfolio of insurance companies and brokers. will lead the Group’s Stoehr joins the company from Deutsche Bank, Overseas magazine and The Linguist; and predominately writes about travel, languages and Prior to moving to Singapore in 2002, Mr Lu served specialist health where he held a number of key positions in the her hometown, London. as a Client Manager and Treaty Underwriter at Swiss insurance underwriting area of human resources (HR). His 29-year career Re Australia Ltd in Sydney. He joined Swiss Re in activities and will be included assignments in New York as Regional Barbara Casassus is a Paris-based freelance 1996 as a management trainee, recruited from the based within the company’s healthcare centre in Head of HR, in London, and most recently as journalist. She contributes to the American weekly magazine ‘Science’, the daily newspapers Chicago US where he obtained his MBA, and trained in Tonbridge, Kent. He will have responsibility for Managing Director, Chief of Staff-Global HR in Tribune and ‘Baltimore Sun’, and to specialist Zurich, Switzerland before his assignment in Asia. technical underwriting and pricing and will work Frankfurt. He will be responsible for managing and magazines and newsletters on economics, law, Mr Lu has a BA in Economics from Yunnan University closely with the business to build competitive implementing Zurich’s global HR strategy. tourism and publishing in France. She wrote for the Financial Times, the Times Educational Supplement in Kunming, China, and an MBA from Providence products and innovative business solutions for E. Randall Clouser joined Zurich in 1996 and was and a number of periodicals while living in the College, US. He is a Fellow of the Australia and New supporting intermediaries. subsequently appointed Chief Executive Officer of Middle East and Japan. Zealand Institute of Insurance and Finance. Alistair joins Groupama from FirstAssist where as PMI Zurich Corporate Solutions. On 1 August 2004, he Miles Clarke is a Sydney-based freelance Underwriting Manager he had a strong record of was appointed Head of Group Business Operations journalist with more than two decades’ experience developing significant profitable growth. He has and Performance. Before joining Zurich, he gained in newspapers, radio and trade press. As a considerable knowledge and expertise within the extensive industry experience in strategic marketing business and travel writer, his work takes him throughout the Pacific, Southeast and East Asia, healthcare market from his previous employment at and planning, as well as building and leading Australia and New Zealand. Zelickman to Ace Sun Alliance Healthcare and Assistance, where his insurance operations Ace USA has appointed David Zelickman as Senior underwriting experience encompassed PMI, personal serving large corporate Saby Ganguly is an India-based business writer with more than 20 years’ experience, including 16 Vice President and Boston Branch Manager for Ace accident, travel business and cash plans. customers. Mr Clouser in the Middle East. He holds a B.Pharm. degree is Risk Management. Based in Boston, Mr Zelickman Says Philip Bird of the appointment: “We are will have global also the founder of IndiaOneStop.com, which is will have overall responsibility for overseeing delighted that Alistair has agreed to join us. Having responsibilities for one of India’s earliest established business-to- business websites. branch operations, new business development and taken a long hard look at the opportunities in implementing marketing underwriting activities for the Boston branch office. healthcare, we are now finalising our plans to and distribution strategies iJET Travel Intelligence (www.ijet.com), the travel “David’s appointment in assuming responsibility for develop this important part of our business. For this across the group. This risk management company, provides real-time travel intelligence information through its award- the continued success of the Boston branch office to happen, we recognised that we needed a newly created role will winning Worldcue (copyright) technology platform operations reflects our commitment to establishing respected, high calibre, technical underwriter to lead bring a co-ordinated for tracking and communicating with travellers. iJET a local regional presence,” said Jay Lefkowitz, and manage our team. focus to Zurich’s customer and intermediary services are backed by regional and category specialists from the fields of intelligence, security, Executive Vice President and Director of Field Alistair has the profile, knowledge and expertise to relationships, as well as the Group’s marketing and travel, and health who staff an around-the-clock Operations for the Eastern region, Ace Risk help us make a real difference for our healthcare branding activities, and will have responsibility for operations centre in Annapolis, MD. Management. partners and their clients.” corporate communications. Milan Korcok is an award-winning freelance health policy and economics writer who covers travel insurance, public health, and medical education issues in Canada and the United States. He has been writing about health financing and policy issues in these countries since the 1960s and is a R&SA appoints two Two new directors at Heath Lambert frequent contributor to leading North American professional journals and consumer media. He US board members MedSave appoints Aon director lives in Fort Lauderdale, Florida. Roger St Pierre is one of the UK’s most William Shea, 56, has been named Chairman of New York-based Heath Lambert Group has appointed Nigel experienced travel, music and motoring writers and has visited 111 countries on five continents. His Royal & SunAlliance (R&SA)’s Board of Directors, healthcare Godwin as Executive Director within its major insights appear in a wide range of consumer and bringing to the role 30 years’ financial services management firm, accounts group. Mr Godwin was previously with trade publications. Roger’s 33 published books experience. From 2001-2004, he was CEO of US MedSave USA, is rival Aon for 27 years where he was client include a history of McDonald’s, guides to such destinations as Orlando, Moscow, Edinburgh and insurer Conseco, where he successfully restructured pleased to service director with responsibilities including the the Costa del Sol, biographies of Marilyn Monroe, the company and brought it back to profitability. announce the servicing and management of teams for major James Dean, Bob Marley and Jimi Hendrix and a Previously, he was Vice Chairman and CFO at Bank appointment of UK, multinational and global clients. Mr Godwin’s range of cycling books, the latest of which is A Bike Is For Life. Boston Inc. and was a Senior Partner of Coopers & two Directors. role at Heath Lambert encompasses the Lybrand, now PriceWaterhouseCoopers. Nasrin management of major client relationships and Benedict Tembo is a journalist working for the Michael Crall, 61, has become an outside Director of Nourizadeh, business development. Zambia Daily Mail, one of the country’s mass circulation newspapers as deputy production R&SA. Mr Crall was the first CEO of Equitas, where pictured right, fills His priority is to build the Group’s involvement in editor. Prior to moving to the production he remains and outside Director. In 2003, he was the position of the food manufacturing, agricultural and waste department three years ago, he was on the sports also appointed an outside Director of property and Director of management sectors. desk, as sports editor. He has covered some of the high-profile events such as the African Nations Cup casualty insurer and reinsurer Catlin, and has held Business Alan Pratten, Managing Director, major accounts (1998 in Burkina Faso and 2002 in Mali), the 2000 several executive posts in Europe and the US. Development and Account Management. She holds group, Heath Lambert said: “The major accounts Sydney Olympic Games, among others. He is also John Tighe, President and CEO, Royal & SunAlliance a degree from the Wharton Business School and group is a rapidly growing team with significant board member of the Press Association of Zambia (PAZA), the country’s media professional body. He US, commented: “These appointments bring us a her career new business wins and great client retention. We also contributes to NewsAfrica Magazine, Kick-Off great depth of senior US insurance expertise. They background is have achieved this through recruiting and and Appropriate Technology magazines. will be a great asset as we continue to restructure predominantly retaining the best people in our chosen sectors; our US business.” in marketing, clearly Nigel is another great example.” Published on behalf of having worked Voyageur UK (Travel Services) Ltd, extensively in Voyageur Buildings, 43 Colston Street, Middle Eastern Bristol BS15AX, UK Homeward bound markets. Companions at work Karen Ann The information contained in this publication has been published in good faith and every effort has been made to Managing Director of ETI International Travel Bagni, left, joins Companion Property & Casualty Group in the ensure its accuracy. Neither the publisher nor Voyageur Ltd Protection, Marc Uhrenholt, will be leaving his the firm as US has named two new vice presidents. Laura can accept any responsibility for any error or position on 31 March to return to his native Director of Currence, who becomes Vice President of misinterpretation. All liability for loss, disappointment, Denmanrk. He has accepted a position with Falck Provider and Claims, will provide leadership for claims negligence or other damage caused by reliance on the Denmanrk A/S as Senior Vice President, where he Account adjudication philosophy, management controls information contained in this publication, or in the event of bankruptcy or liquidation or cessation of the trade of any will be responsible for the company’s health Management, and procedures. Steven Bloss, who becomes company, individual or firm mentioned, is hereby excluded. division and its international ambulance and fire- where she will Vice President of Marketing and Underwriting, fighting operations. support the will be responsible for premium revenue and risk Printed by St. Ives (Roche) Ltd Know to us here at ITIJ through his long-standing relationships selection activities of the underwriting, attendance of the International Travel Insurance between clients and healthcare providers. She marketing, loss control and premium audit Copyright © Voyageur Publishing 2004. Materials in this publication Conference (ITIC), we wish Marc every success for previously held posts in the professional staffing departments. Companion is a subsidiary of may not be reproduced in any form without permission. the future. industry. BluCross BlueShield of South Carolina. INTERNATIONAL TRAVEL INSURANCE JOURNAL ISSN 1743-1522

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